AI Boom Drives Nvidia To Overtake Alphabet In Market Value

(RTTNews) - Chipmaker Nvidia (NVDA) surpassed Alphabet Inc. (GOOG) to become the third most valuable company in the U.S. on Wednesday, trailing behind Microsoft (MSFT) and Apple (AAPL).

Nvidia's market value rose to $1.83 trillion on Wednesday, fueled by the robust demand for its AI server chips, inching above Alphabet's $1.82 trillion market capitalization. The chipmaker's shares rose 2.5 percent to $739 per share, whereas the Google parent's shares ended trading at $145.94.

The move comes one day after the Santa Clara-based company surpassed Amazon, when Nvidia's stock rose around 3 percent to over $740 per share, valuing the company at $1.83 trillion, whereas the e-commerce giant's market valuation stood at $1.80 trillion.

The ongoing AI boom had pushed Nvidia's stock up 49 percent this year after soaring 239 percent in 2023. The company manufactures AI server chips which cost more than $20,000 each and are used by the software companies and cloud service providers for the development and integration of AI technology.

Nvidia's H100 chips are in great demand among the top generative AI players. According to financial services firm DA Davidson, Microsoft and Meta had spent $4.5 billion each on these chips last year.

Earlier, Nvidia used to be known for its graphics processing units used in building gaming computers.

The chipmaker will report its quarterly earnings on February 21. Analysts expect a growth of 118 percent in sales to $59.04 billion, CNBC reports.