Chip giant Nvidia is worth more than Google owner Alphabet, a day after surpassing Amazon in value

There seems to be no stopping Nvidia’s scorching rally. The day after surpassing the market value of Amazon.com, the chip giant has now overtaken Alphabet as well.

Shares of Nvidia rose 2.5 per cent on Wednesday, closing with a market capitalisation of about US$1.83 trillion, and topping the search giant’s value of roughly US$1.82 trillion, data compiled by Bloomberg show.

With the gain, the chip maker has become the world’s fourth-most valuable company. Saudi Aramco, valued at about US$2 trillion, looms as the next milestone.

Nvidia’s rally has been relentless this year. The stock has climbed about 49 per cent and added some US$602 billion in value, boosted by an insatiable demand for its accelerators that power data centres running complex computing tasks required by artificial intelligence (AI) applications.

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While other big tech shares have hardly performed badly in 2024, juxtaposed with Nvidia’s rally they appear to be relegated to the slow lane. The other mega-cap tech firms have already announced earnings, and Nvidia is slated to report February 21.

“Expecting another strong report, but the bar has been raised,” Susquehanna Investment Group analyst Christopher Rolland wrote in a note Wednesday.

Wall Street analysts are seeing signs of continued robust demand for Nvidia’s AI H100 accelerators. The chip maker’s sales have been driven by AI spending at its biggest customers, including Microsoft and Meta Platforms.

At least five brokers have hiked price targets for Nvidia this month. Analysts on average have boosted 2024 revenue estimates by more than 100 per cent over the last 12 months, according to data compiled by Bloomberg.

While the AI frenzy has boosted tech stocks that have been linked to the technology, Nvidia is one of the few firms to have demonstrated significant revenue growth from AI.

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