On Wednesday, Nvidia exceeded the market capitalization of Google’s parent company, Alphabet. This event highlights the ongoing impact of the artificial intelligence boom on the chipmaker’s stock performance.
Nvidia’s stock rose by more than 2%, closing at $739.00 per share. This pushed its market value to $1.83 trillion, slightly surpassing Google’s $1.82 trillion market cap.
The milestone came just one day after Nvidia surpassed Amazon in terms of market value.
The symbolic milestone further confirms Nvidia’s status as a Wall Street favorite, driven by surging sales of AI chips. Its valuation now surpasses that of many major software firms and cloud providers integrating AI into their products.
Nvidia’s shares have surged by over 221% in the past year, fueled by strong demand for its AI server chips, some priced at over $20,000 each.
Tech giants like Google and Amazon require thousands of these chips for their cloud services. Previously known for consumer graphics processors for gaming PCs, Nvidia has capitalized on the lucrative AI market.
Google was anticipated to benefit from AI, given its pioneering work in techniques like transformer architecture, notably used in advanced models like ChatGPT.
Despite challenges such as layoffs and cultural issues following its “code red” declaration to integrate AI into its products, Google’s shares have still risen by 55% in the past 12 months.
The company recently introduced Gemini Advanced, a $20 per month AI subscription, marking one of its initial ventures into paid generative AI products.
Nvidia has ascended to become the third largest U.S. company, trailing only Apple and Microsoft.
The company is scheduled to report its quarterly earnings on Feb. 21, with analysts anticipating a remarkable 118% annual sales growth, projecting revenues to reach $59.04 billion.
