Nvidia is now the third most valuable US company as per market capitalisation (m-cap), propelled by a sharp uptick in its stock price over recent months. The chipmaker’s meteoric rise saw it surpass Google-parent Alphabet on Wednesday, ahead of Nvidia’s eagerly anticipated quarterly report.
In terms of m-cap Nvidia is only behind Microsoft Corporation and Apple Inc. As per media sources, the current m-cap of Nvidia stands at $1.8 trillion while those of Apple and Microsoft are at $2.8 trillion and $3 trillion respectively.
Shares of Nvidia Corporation on the Nasdaq have been in the green since November 2023 on a monthly scale. Overall, they have surged over 78 per cent since November last year. Over the last one year, the stock has surged 219 per cent. Nvidia controls about 80 per cent of the high-end AI chip market, a position that has boosted its stock price this year after it more than tripled in 2023.
Why has Nvidia stock surged?
As Mint reported earlier, Nvidia has been a top beneficiary of technology companies race to build AI (artificial intelligence) into their products and services, and the latest gain in its stock came a day after it ended a session with a market capitalization above Amazon’s for the first time in two decades.
Nvidia will release its quarterly earnings results on February 21. Analysts, on average, see the company’s January fiscal quarter revenue more than tripling to $20.37 billion, fueled by demand for its top-shelf AI chips, according to LSEG data. Analysts see its adjusted net profit surging more than 400 per cent to $11.38 billion.
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