Nvidia Market Cap Threatens Alphabet, Surpasses Amazon in Wall Street Rankings

In the modern world, any activity related to artificial intelligence is on the rise. This process is most obvious in stock markets. Let’s highlight several outstanding happenings for today.

The superior AI chipmaker Nvidia is poised to overtake Alphabet as Wall Street’s third most valuable company, marking a significant milestone in Nvidia market cap history. 

On February 13th, Nvidia’s market capitalisation coursed above Amazon’s for the first time in twenty years, fueled by the rising demand for its graphics processors in the AI market. 

While Nvidia’s shares experienced a slight dip of 0.17%, its market value reached $1.78 trillion, eclipsing Amazon’s $1.75 trillion, which saw a decline of 2.15%. Meanwhile, Google-owner Alphabet witnessed a stock dip of 1.62%, leaving its market capitalisation at $1.81 trillion.

Nvidia has developed as a key beneficiary in the tech industry’s race to integrate AI into various products and services. The scarcity of its graphics processors has become evident as significant players like Meta Platforms and other tech giants scramble to secure billions of dollars worth of Nvidia components. 

In a recent client note, Mizuho raised Nvidia’s price target to $825 from $625, indicating bullish sentiments ahead of the company’s quarterly results slated for Feb. 21.

Overview of Stocks Like Nvidia

Despite lead times for Nvidia’s top-shelf H100 processor showing a decline, the overall demand continues to outstrip supply, according to Mizuho analyst Vijay Rakesh. Rakesh further emphasised Nvidia’s substantial AI upside potential, along with companies like Broadcom and Advanced Micro Devices (AMD). 

With Nvidia commanding approximately 80% of the high-end AI chip market, its stock has witnessed a staggering 46% surge this year, following a more than tripling value throughout 2023. This growth trajectory underscores the profound optimism surrounding AI-related investments, with tech giants like Microsoft and Meta also reaching record highs.

Alphabet Stocks

Although a formidable player in the AI landscape, Alphabet has faced challenges in meeting investors’ high expectations. Despite integrating chatbot technology into its Google search engine and marketing generative AI tools to cloud customers, Alphabet’s stock experienced volatility. 

While it hit an all-time high, its quarterly report in January failed to meet expectations, leading to a subsequent drop in share prices. Overall, Alphabet’s stock maintains a 4% increase in value in 2024.

Microsoft Stocks

In the broader context, Microsoft recently surpassed Apple to become the world’s most valuable company, valued at over $3 trillion. Meanwhile, Apple, often seen as trailing in the AI race, has experienced a 4% drop in its stock value in 2024. 

Bottom Line

Nvidia’s stock forecast is more than promising among stocks similar to Nvidia. Its dominance in the AI chip market and market cap trajectory underscores the evolving landscape of tech investments, with implications for investors and industry competitors.