Nvidia overtook Alphabet as the third most valuable company in the United States on Wednesday, shortly after overtaking Amazon and as investors await the AI-focused chipmaker’s next quarterly earnings report.
Nvidia shares rose 2.46%, setting a market value of $1.825 trillion, while Alphabet shares closed 0.55% higher, settling at a value of $1.821 trillion.
Nvidia has been a major beneficiary of tech companies’ rush to incorporate artificial intelligence into their products and services, and Wednesday’s surge in its shares came a day after the company surpassed Amazon’s market value by the first time in two decades. Amazon closed yesterday with a value of $1.776 trillion.
Nvidia controls about 80% of the market for high-end AI chips, a position that has boosted its stock price 47% this year after more than tripling in 2023. Customers face shortages of Nvidia components , while AI developers face months of waiting lists to use their processors installed in cloud computing centers.
Nvidia’s quarterly results, expected next Wednesday, will be among the most eagerly awaited on Wall Street.
“The market recognizes Nvidia as a leader in artificial intelligence. But if Nvidia delivers bad results, if they don’t exceed investor expectations, this thing could sell for 20% or 30% after the close of trading,” said Jake Dollarhide , chief executive of Longbow Asset Management.
An early leader in the artificial intelligence race, Microsoft in January overtook Apple to become the world’s most valuable company, now valued at more than $3 trillion.
According to LSEG data, analysts on average expect Nvidia’s fiscal January quarter revenue to more than triple to $20.37 billion. Analysts expect adjusted net income to rise more than 400% to $11.38 billion.
Source: Terra
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