Nvidia has just overtaken Amazon for the first time in two decades as the fourth-most valuable US-listed company; now, it’s on track to surpass Alphabet as the company with the third-biggest market capitalization.
The companies’ current market caps, as of 9:55 am ET:
- Alphabet: $1.82 trillion
- Nvidia: $1.81 trillion
- Amazon: $1.76 trillion
With Nvidia controlling more than 80% of the AI chip market share, and because generative AI is a red-hot industry, “overall demand far outstrips supply,” as Mizuho analyst Vijay Rakesh wrote.
The Santa Clara, California-based company makes the highly sought-after H100, the $30,000 chips dominating the generative AI market. And Nvidia’s customers like Google and Meta are paying billions for these chips to fuel AI systems that power their generative AI products.
Lead times for the H100 chips have declined, according to Rakesh. Even with multiple competitors releasing their own AI chips, including chipmakers like AMD and tech giants like Google and Microsoft, Nvidia still commands the market.
Nvidia reports earnings on Feb. 21 after the market close.