Billionaire Jensen Huang’s owned Nvidia achieved a remarkable milestone on Monday as its market value surpassed that of technology giants Amazon, owned by Jeff Bezos and Alphabet(Google’s parent company)owned by Larry Page,
This feat was realized as Nvidia’s stock soared, quadrupling over the past 15 months, with investors flocking to the company’s market-leading position in artificial intelligence.
- Nvidia’s shares experienced a nearly 3% increase, reaching a record high exceeding $740. This propelled its market capitalization to $1.83 trillion, narrowly surpassing Alphabet’s $1.82 trillion and Amazon’s $1.8 trillion.
- As recently as October 2022, Nvidia’s market cap stood below $300 billion, trailing significantly behind Amazon and Alphabet, both boasting valuations above $1 trillion.
- The company has now secured the position of the fourth most valuable public company globally, trailing only Microsoft ($3.1 trillion), Apple ($2.9 trillion), and Saudi Aramco ($2 trillion).
Nvidia’s prominence lies in its role as a leading producer of semiconductor chip technology powering generative AI. Investors have been captivated not only by the potential for Nvidia to capitalize on the surging interest and corporate spending in AI but also by its remarkable financial performance.
What you should know
In the last quarter, Nvidia’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by over 500% year-over-year, driven by the explosive growth in its AI unit. This outpaced Amazon and Alphabet, which reported robust 20% or more earnings growth during the same period.
While Nvidia’s gross revenue and profits are comparatively smaller than trillion-dollar peers like Apple and Microsoft, analysts anticipate a closing of this gap in the near future. Despite its stock’s more than 50% increase this year, Nvidia remains a top pick on Wall Street and a favorite for analysts at both Goldman Sachs and Bank of America.
Both firms maintain an $800 price target for Nvidia, suggesting an 8% further upside for the stock.
Notably, Nvidia’s stock has delivered a 17,000% gain over the past decade, making it the best-performing stock on the S&P 500. A $1,000 investment in Nvidia ten years ago would now be valued at approximately $175,000.
Investors are eagerly anticipating Nvidia’s upcoming earnings report scheduled for next Wednesday, with analysts projecting the company to announce its third consecutive quarter of record sales and profits.
