Emerging as a prominent player in the technology sector, Nvidia, the renowned chipmaker, has successfully surpassed Alphabet, which is the parent company of Google, in market value. This significant achievement catapults Nvidia to the third rank in the US market, positioning it right behind two tech giants, Microsoft and Apple.
The market capitalization of Nvidia saw an impressive rise to $1.83 trillion on Wednesday. This substantial increase was primarily driven by the robust demand for artificial intelligence (AI) server chips. The market capitalization of Alphabet, on the other hand, stood at $1.82 trillion, slightly lower than Nvidia.
On the stock market front, Nvidia’s share price experienced a 2.5 percent increase, reaching $739. Alphabet’s stock ended the trading day at $145.94. The rise in Nvidia’s share price is a testament to its growing dominance in the tech industry.
Interestingly, on Tuesday, Nvidia had managed to overtake yet another tech behemoth, Amazon. This happened as Nvidia’s shares experienced a 3 percent jump, leading its market capitalization to reach $1.80 trillion.
Over the course of this year, Nvidia’s share price has seen a massive jump of 49 percent. This has been largely due to the explosive growth in the field of artificial intelligence. In 2023, Nvidia’s market value more than tripled, signifying its rapid expansion. The company is known for manufacturing AI-powered server chips, which are extensively utilized by software firms and cloud service providers.
One of Nvidia’s products, the H100 chips, are in high demand among the top players in the generative artificial intelligence sector. As per the financial services firm DA Davidson, both Microsoft and Meta spent a whopping $4.5 billion on these chips just last year.
Prior to the boom in artificial intelligence, Nvidia was primarily recognized for its graphics cards that were used in gaming PCs. However, with the advent of AI, Nvidia has successfully diversified its product range and solidified its position in the tech market.
