 "NVIDIA up by 49 per cent in 2024, surpasses Google's Alphabet in market cap days after taking down Amazon")
NVIDIA seems hell-bent on continuing its meteoric rise which has seen a boost with the the ongoing AI tide. The chip-making giant has surpassed Google’s parent company Alphabet in market value just a day after overtaking Amazon.
According to data compiled by Bloomberg, NVIDIA’s shares soared by 2.5 per cent on Wednesday, culminating in a market capitalization of approximately $1.83 trillion, edging past Alphabet’s valuation of roughly $1.82 trillion.
This surge propels NVIDIA into the esteemed position of the world’s fourth-most valuable company, with only Saudi Aramco, valued at approximately $2 trillion, looming as the next milestone.
NVIDIA’s staggering rally throughout the year has been relentless, with its stock climbing approximately 49 per cent and accruing a staggering $602 billion in added value.
This surge has been fueled by an insatiable demand for NVIDIA’s accelerators, which power data centres tasked with complex computing duties required by AI applications.
While other major tech stocks have not performed poorly in 2024, NVIDIA’s rally has outpaced them significantly, relegating them to a comparatively slower lane. Notably, while other mega-cap tech firms have already disclosed earnings, NVIDIA is scheduled to report its earnings on Feb. 21.
Analysts from Susquehanna Investment Group anticipate another robust report from NVIDIA, though acknowledging that the bar has been set high.
There are clear signs on Wall Street of sustained strong demand for NVIDIA’s AI H100 accelerators, with the chipmaker’s sales being propelled by AI spending at major clients like Microsoft Corp. and Meta Platforms Inc.
Impact Shorts
More ShortsThe market response to NVIDIA’s performance has been evident, with at least five brokerage firms increasing their price targets for NVIDIA this month alone.
Data compiled by Bloomberg indicates that analysts, on average, have revised their 2024 revenue estimates for NVIDIA upwards by over 100 per cent in the past year.
In the context of the AI frenzy that has driven up tech stocks associated with the technology, NVIDIA stands out as one of the few firms to have demonstrated significant revenue growth directly attributable to AI.
(With inputs from agencies)
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