Nvidia Bags Spot For 3rd Largest U.S. Company

Leading American microchip multinational firm Nvidia recently surpassed tech giants Alphabet (which owns Google) and Amazon in market capitalisation to emerge as the third largest US company.

The chipmaker recently hit a market cap of an enormous $1.8 trillion. The rapid rise of its value can be attributed to its strong push for the incorporation of artificial intelligence (AI) technology in its products.

 

Founded in 1993, Nvidia manufactures graphics processing units (GPUs) that are built for graphics and gaming. The crypto mining community extensively used its GPUs during the past years as the crypto market skyrocketed to new heights amid consistent setbacks. GPUs are now being increasingly utilised for enhancing AI programmes.

Nvidia partnered with leading cloud computing platforms such as Amazon Web Services (AWS) and Microsoft Azure to provide its advanced services. OpenAI, Microsoft, Alphabet and Meta remain its largest customers.

In 2023, we witnessed a spectacular surge in the MegaCap stocks of the “Magnificent Seven”—Nvidia, Meta, Tesla, Alphabet, Apple, Microsoft, and Amazon, thanks to the hype surrounding AI.

 

Early this month, Reuters reported that the California-based company is building a new business unit focused on designing custom AI processors and bespoke chips—an opportunity worth billions.

Within the last 12 months, the value of Nvidia stock has risen 3.5x from a little above $200 in February 2023 to nearly $730 at press time today.

 

Source: Market Watch

The company will report its quarterly earnings results on 21st February as investors remain stuck to the charts.