- Nvidia has surpassed Alphabet to become the third most valuable U.S. public company, with a market cap of $1.8 trillion. This caps off a remarkable run fueled by demand for Nvidia’s GPUs used in AI.
- Nvidia’s share price has skyrocketed over 50% this year. Revenue is projected to climb 120% in 2024 and 60% the following year as AI chip demand accelerates.
- While unlikely to catch Apple or Microsoft soon, Nvidia’s success highlights the rising importance of AI computing. As these technologies proliferate, Nvidia appears poised for further growth.
Chipmaker Nvidia has surpassed Google parent company Alphabet to become the third most valuable public company in the United States. This milestone caps off a remarkable run for Nvidia, fueled by strong demand for its graphics processing units (GPUs) used in artificial intelligence applications.
Nvidia’s Meteoric Rise
Just a day earlier, Nvidia overtook Amazon to become the fourth largest U.S. company by market capitalization. As of February 15, 2024, Nvidia was worth $1.8 trillion, moving past Alphabet’s $1.77 trillion valuation.
While impressive, Nvidia still trails behind Apple at $2.81 trillion and Microsoft at over $3 trillion in market cap. Globally, Nvidia falls short of oil giant Saudi Aramco’s $2.07 trillion value.
Nvidia’s share price has skyrocketed over 50% so far this year. The chipmaker was the top performing stock in the Nasdaq 100 index in 2023 as well, with a more than 200% annual gain.
Growth Prospects Remain Strong
Nvidia’s revenue is projected to climb 120% in fiscal 2024 and increase another 60% the following year. Demand for AI-optimized chips and GPUs continues to accelerate.
Recently, analysts at UBS and Mizuho raised their price targets on Nvidia’s stock. More gains may be in store as Nvidia cements its position as a leader in next-generation computing.
The Road Ahead
While it seems unlikely Nvidia can catch Microsoft or Apple in the near future, the chipmaker has exhibited tremendous growth.
Nvidia’s success highlights the rising importance of AI computing and the company’s ability to capitalize on this secular trend. As these technologies continue proliferating, Nvidia appears poised to continue its ascent up the market cap rankings.
