Nvidia Overtakes Alphabet and Amazon, Secures Spot as World's Third Most Valued Company

In a stunning turn of events, Nvidia has surged past tech giants Alphabet and Amazon, claiming the coveted position as the world's third most valued company. The AI chipmaker's stocks witnessed a significant upswing, propelling its market value beyond Google's parent company Alphabet just a day after surpassing Amazon. As of now, Nvidia stands only behind Apple and Microsoft in market valuation.

On Thursday, Nvidia's market value reached $1.825 trillion, fueled by robust investor anticipation ahead of its upcoming quarterly reports. The company experienced a 2.46% increase in its stock, while Alphabet's stock saw a 0.55% climb, resulting in a market value of $1.821 trillion for the tech giant.

Nvidia has been a primary beneficiary of the tech industry's race to integrate AI into their products and services, aligning with substantial investments made by major players like Google and Amazon in their AI initiatives.

This latest surge in Nvidia's stock follows a session where it surpassed Amazon's market capitalization for the first time in two decades, with Amazon's market capitalization standing at $1.776 trillion after a 1.39% increase in its stock on Wednesday.

Controlling approximately 80% of the high-end AI chip market, Nvidia's dominance has driven its stock price up by 47% this year, building on the impressive triple-digit growth it achieved in 2023. Nvidia's top-of-the-line components are currently facing shortages, with AI developers encountering months-long waiting lists to access its processors through cloud-computing providers.

Over the last six months, Nvidia has emerged as one of Wall Street's top gainers among AI companies, riding on the wave of anticipation surrounding its impending quarterly reports. The company's stocks have experienced a remarkable surge, registering a 24% jump on the S&P 500 index in the past year, and an astonishing 239% growth in 2023, with an additional 49% spike in the first two months of 2024.

As Wall Street eagerly awaits Nvidia's upcoming quarterly reports, analysts predict a substantial increase in profits. LSEG data indicates an anticipated tripling of Nvidia's January fiscal quarter revenue to $20.37 billion, driven by the soaring demand for its premier AI chips. Analysts also project a staggering 400% surge in its adjusted net profit to $11.38 billion.

The highly anticipated Nvidia quarterly reports are scheduled for release on Wednesday, February 21. Investors and analysts alike are poised to gain valuable insights into the company's financial performance and the trajectory of its continued success in the AI sector.