Nvidia was briefly more valuable than Amazon as AI hype spikes again

13 February 2024, 20:35 published

Nvidia briefly overtook Amazon in terms of market capitalization, fueled by a spike in interest surrounding artificial intelligence.

LSEG data reported by Reuters claimed the chipmaker reached a record high of $734.96 per share, giving it a market value of $1.82 trillion, surpassing Amazon’s $1.81 trillion.

Nvidia has now returned back to fifth position among the US’s most valuable companies, trailing Microsoft, Apple, Alphabet (Google) and Amazon.

Is Nvidia worth more than Amazon?

With Nvidia share prices rising 231.6% over the past year, and Amazon shares up by a less impressive (but still very healthy) 73.1%, Nvidia may soon overtake the Seattle-based company more permanently.

This achievement marks the first time Nvidia has outpaced Amazon in more than two decades, when it 2002 they were both worth less than $6 billion.

With Amazon reporting better-than-expected sales last month, thanks to a successful holiday period, investors are waiting for Nvidia to report its most recent quarterly earnings on February 21.

Nvidia has positioned itself as a key player in supplying components to technology companies focused on generative AI. However, with companies like Google, Amazon and Meta all exploring their own chips, Nvidia’s success rides on a lot.

Elsewhere in the tech landscape, Microsoft last month surpassed Apple as the world’s most valuable company, and the second to reach a market value of more than $3 trillion. Today, Apple sits below that $3 trillion threshold, after reaching the momentous figure in June 2023.

As the AI boom continues, Nvidia’s considerable share of the market highlights the growing significance of technology companies in contributing to the overall global economy, as well as the immense growth potential for companies handling aspects of AI.