The market value of the American chip-making company Nvidia has come close to surpassing that of Amazon for the first time in two decades, thanks to the enthusiasm surrounding artificial intelligence on Wall Street. This surge has also propelled the chip giant closer to the market value of Alphabet, the owner of Google. Since the beginning of the year until mid-session trading on Wednesday, Nvidia's market capitalization has risen by 40% to $1.715 trillion, which is about 3.0% less than Amazon's market value of $1.767 trillion, and about 6.0% less than Alphabet, estimated at approximately $1.812 trillion, according to data from the London Stock Exchanges. Nvidia's stock rose 1.8% to $694.48 following an optimistic report from Morgan Stanley. The company is set to announce its quarterly results on February 21.
Morgan Stanley raised its price target for the stock to $750 from $603, with analyst Joseph Moore stating in a client note that "demand for artificial intelligence continues to rise."
Nvidia has become the fifth-largest company in terms of market capitalization in the U.S. financial market after its share price more than tripled in 2023. Nvidia has been one of the biggest beneficiaries of the race among technology companies to integrate artificial intelligence into their products and services, with Meta and other major tech firms purchasing billions of dollars’ worth of graphics processors from Nvidia.
Nvidia's market value surpassed that of Amazon in 2002, when both were valued at less than six billion dollars. Saudi Aramco's market value stands at $2 trillion, making it the third-largest publicly traded company in the world by value, according to data from the London Stock Exchanges. However, over 90% of the company's shares are state-owned, with less than 2.0% of the shares freely traded on the market.
