Nvidia surpassed Google's parent company, Alphabet, in market capitalization on Wednesday, securing its position as the third-largest company in the United States (US).
According to CNBC, Nvidia's rise was fueled by the growing demand for artificial intelligence (AI) technologies.
Nvidia Surpasses Alphabet and Amazon in Market Value
With Nvidia's stock soaring over 2% to reach $739.00 per share on Wednesday, its market value surged to $1.83 trillion, beating Alphabet's market cap of $1.82 trillion. This achievement comes a day after Nvidia surpassed Amazon in market value.
Nvidia's market status has been primarily propelled by the soaring sales of its AI chips. These chips cater to the needs of tech giants like Google and Amazon for their cloud services, and they can cost more than $20,000 each.
Nvidia Becomes the Third-Largest US Company
Nvidia's remarkable stock performance has increased by more than 221% over the past 12 months. Before the recent AI boom, the company focused on less profitable consumer graphics processors for gaming computers.
Nvidia, now the third most valuable US company behind Apple and Microsoft, is slated to release its quarterly earnings on February 21. Analysts expect a remarkable 118% annual sales growth to $59.04 billion.
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