Nvidia's market cap surpasses Amazon's thanks to AI chips

Not long ago, the value of each Nvidia share closed at $721.28 per share, which means that the company's market value reached $1.78 trillion and surpassed Amazon's market value of $1.75 trillion. Nvidia also outperformed Amazon for a few hours on Monday, but this is the first time since 2002 that Nvidia's value has exceeded Amazon's after the market closed.

Shares of Nvidia are up more than 246% in the past 12 months. With increasing demand for AI server chips, this company has been able to grow significantly. Nvidia reports quarterly earnings on February 21st. Analysts predict 118% annual growth for the company.

Of course, it should be said that Amazon is also running in the market. The company's earnings report on February 1 showed that Amazon was able to achieve financial success by reining in costs after laying off 27,000 employees. Amazon's stock is up about 78% in the past 12 months.

However, the current situation shows that changes are taking place among the most valuable companies in the world. For example, in January, Microsoft overtook Apple to become the most valuable company in the United States by market capitalization. A few days ago, the value of the American chip manufacturer Nvidia was equal to the entire Chinese stock market. The market value of Nvidia, the American chipmaker giant, has almost quadrupled since the beginning of 2023 thanks to artificial intelligence.

Nvidia's financial report reports a 101% growth in the company's revenue in the third quarter of 2023 and a 206% growth in revenue in the fourth quarter of last year. "Michael Harnett", the chief investment strategist of the Bank of America, says that Nvidia's value has grown by 600 billion dollars in the past two months, reaching 1.7 trillion dollars, which is equal to the value of the entire Chinese stock market in the Hong Kong stock exchange.