Topline
Nvidia achieved a remarkable milestone on Monday, surpassing the market value of tech giants Amazon and Alphabet, thanks to its stock soaring more than fourfold in the last 15 months due to investor confidence in its leading position in artificial intelligence.
Important Information
Nvidia’s shares surged nearly 3% to an all-time high of over \(740, propelling its market capitalization to \)1.83 trillion, slightly below Amazon and Alphabet’s $1.8 trillion valuations.
Amid the AI frenzy on Wall Street, Nvidia’s extraordinary journey culminated in a symbolic overtaking of its competitors.
As of October 2022, just before the AI surge, Nvidia’s market cap lagged at under \(300 billion, trailing behind Amazon and Alphabet, both valued at over \)1 trillion.
Currently, Nvidia ranks as the fourth most valuable publicly traded company globally, trailing only Microsoft (\(3.0 trillion), Apple (\)2.9 trillion), and Saudi Aramco ($2 trillion+).
Historical Information
Nvidia stands out as the leading producer of silicon chip technology essential for AI development. Investors have been impressed by Nvidia’s ability to capitalize on the AI boom and its impressive financial performance. The company’s EBITDA soared by over 500% in the last quarter, driven by exponential growth in its AI segment, outperforming Amazon and Alphabet, which posted solid 20%+ earnings growth. Despite its slightly lower gross revenue and profits compared to its trillion-dollar counterparts, analysts foresee Nvidia narrowing the gap soon. While its \(9.2 billion profit last quarter falls short of Apple and Microsoft’s \)22 billion+ earnings, Nvidia remains a top pick on Wall Street. Both Goldman Sachs and Bank of America analysts have set an $800 price target for Nvidia, indicating an additional 8% upside potential.
Unexpected Point
Nvidia’s stock has skyrocketed by an astounding 17,000% in the past decade, marking the highest return in the S&P 500, nearly tripling that of Advanced Micro Devices, a prominent chipmaker and market leader. An initial \(1,000 investment in Nvidia ten years ago would now be valued at approximately \)175,000.
What To Be On The Lookout For
Nvidia is set to announce its fiscal quarter earnings for the previous month post-Wednesday, with experts anticipating the company to report its fourth consecutive quarter of record-breaking sales and profits.
