Nvidia briefly overtook Amazon in market capitalization on Monday, as enthusiasm for artificial intelligence made the chip maker the fourth most valuable US company.
At an all-time high of $734.96, Nvidia had a market cap of $1.82 trillion, while retail giant Amazon’s was at $1.81 trillion and Google-owner Alphabet’s was a few billion less at $1.87 trillion, according to LSEG data.
The last time Nvidia was more valuable than Amazon was in 2002, when each was worth less than $6 billion.
After Amazon reported stronger-than-expected Christmas quarter sales last month, investors are awaiting quarterly results from Nvidia on Feb. 21, the last of the mega-cap companies to report results this season.
Expectations have been high since the report, and its stock is up 47% so far this year, making it the biggest gainer among S&P 500 components.
Nvidia joins top generative AI companies
Nvidia’s quarterly results and strong forecasts a year ago established that the chip designer was in a top position to supply technology companies working on so-called generative AI, such as chatbots and imaging.
Bets on strong AI demand sent Nvidia shares skyrocketing, making it the best-performing value of the so-called “Magnificent Seven” with a 223% rise in the past 12 months. Meta Platform is in second place, up 163%.
Microsoft overtook Apple to become the world’s most valuable company in January, while Alphabet remained in third place.