Chipmaker Nvidia (NVDA) has surpassed e-commerce giant Amazon (AMZN) in terms of its market capitalization.
Nvidia’s stock continues to rise sharply due to strong demand for the microchips and semiconductors that run cutting-edge artificial intelligence (A.I.) applications.
Nvidia finished trading on Feb. 13 at $721.28 U.S. per share, giving it a market capitalization of $1.78 trillion U.S., surpassing Amazon’s $1.75 trillion U.S. market cap for the first time.
Nvidia’s stock has gained 50% year-to-date and is up 214% over the last 12 months. Amazon has seen its share price rise 13% so far in 2024 and increase 69% in the past year.
Nvidia continues to register explosive growth on strong demand for its server chips that power A.I. models and cost more than $20,000 U.S. each.
Companies such as Microsoft (MSFT) and Meta Platforms (META) need tens of thousands of Nvidia chips to run A.I. chatbots such as ChatGPT and other products.
Amazon also continues to grow and recently reported better-than-expected financial results for the fourth quarter of last year.
However, the fact that Nvidia has surpassed Amazon in terms of market cap demonstrates that there’s a shuffle going on among the world’s most valuable publicly traded companies.
This isn’t the first shake-up among mega-cap technology stocks. In January, Microsoft surpassed Apple (AAPL) to become the most valuable U.S. company by market cap with a $3 trillion U.S. valuation.
Nvidia is scheduled to report its next quarterly earnings on Feb. 21. Analysts on Wall Street are forecasting 118% annual sales growth for the chipmaker.
