Nvidiaâ€™s market value surpassed those of fellow technology titans Amazon and Alphabet on Monday, an almost unbelievable feat accomplished as Nvidiaâ€™s stock more than quadrupled over the last 15 months as investors bought into Nvidiaâ€™s market-leading position in artificial intelligence.
Shares of Nvidia rose nearly 3% to an record high of over $740, bringing its market capitalization to $1.83 trillion, narrowly surpassing Alphabetâ€™s $1.82 trillion and Amazonâ€™s $1.8 trillion.
Nvidiaâ€™s market cap sat below $300 billion as recently as October 2022, just before the AI wave began to crest, lagging far behind Amazon and Alphabetâ€™s above $1 trillion valuations at the time.
Nvidia is now the fourth most-valuable public company in the world, trailing only Microsoft ($3.1 trillion), Apple ($2.9 trillion) and Saudi Aramco ($2 trillion).
Nvidia is by far the most prominent producer of the semiconductor chip technology powering generative AI. Investors have been impressed not just by the potential for Nvidia to capitalize on the growing interest and corporate spending in AI, but also by its already exploding results. Nvidiaâ€™s earnings before interest, taxes, depreciation and amortization (EBITDA) expanded by more than 500% last quarter on a year-over-year basis thanks to runaway growth in its AI unit, far stronger than Amazon and Alphabetâ€™s robust 20% or more earnings growth during the comparable period. Nvidiaâ€™s gross revenue and profits are less eye-popping than its trillion-dollar company peers â€“ its $9.2 billion profit last quarter was far smaller than Appleâ€™s and Microsoftâ€™s over $22 billion profits during the comparable stretch â€“ but analysts expect Nvidiaâ€™s financials to soon close the gap. Nvidia remains among the most popular stocks on Wall Street even after its more than 50% run-up this year, and is a top pick for analysts at both Goldman Sachs and Bank of America, each of which has an $800 price target for Nvidia, implying 8% further upside for the stock.