Wall Street's enthusiasm for the AI wave is expected to drive Nvidia's market value to surpass Amazon for the first time in 20 years. At the same time, the market value of this chip giant is not far from Google's parent company Alphabet. Once these two surpasses are completed, Nvidia's market value is expected to unprecedentedly enter the top three listed companies in the United States
Data shows that Nvidia's stock price has surged by about 40% since 2024. As of Wednesday's close, its market value has risen to $1.731 trillion, only about 3% lower than Amazon's $1.771 trillion value and less than 6% lower than Alphabet's $1.814 trillion market value.
After more than doubling its stock price in 2023, Nvidia has now become the fifth largest company by market value in the United States.
Under the wave of AI, with the continuous increase in demand for AI computing power driven by large models and vertical field applications, Nvidia, the leader in the GPU field, continues to benefit. On Wednesday, Nvidia's stock price rose 2.75% again, breaking the $700 mark. The company will release its latest financial report on February 21st.
It is worth mentioning that the last time NVIDIA exceeded Amazon in market value was in 2002- after the Internet foam burst, the market values of both were less than $6 billion.
In terms of institutional outlook, following Goldman Sachs and Bank of America's previous optimism towards Nvidia, Morgan Stanley also raised its target price for Nvidia from $603 to $750 on Wednesday and maintained an over rated rating. "The demand for artificial intelligence is continuing to surge," wrote Joseph Moore, an analyst at Damo, in a client report.
Moore pointed out that artificial intelligence developers need to wait for several months to use the AI supercomputing capabilities of Nvidia chips through cloud computing providers, but the waiting time is decreasing.
Previously, Goldman Sachs analysts raised Nvidia's target price from $625 to $800 on Monday while maintaining its buy rating. Bank of America raised Nvidia's target stock price from $700 per share to $800 last Friday, reaffirming its buy rating and designating it as its preferred stock.
In the past year, technology companies have been competing to integrate AI into their products and services, and Nvidia, which provides AI chips, has always been the biggest beneficiary. Large technology companies such as Meta and Google purchased Nvidia chips worth billions of dollars last year.
Of course, from the ranking of global enterprise market value, if Nvidia wants to go further after surpassing Amazon and Alphabet, it will not be so easy.
As an early leader in the artificial intelligence competition, Microsoft surpassed Apple in January this year to become the company with the world's market value. After these two giants with a market value of approximately $3 trillion, Saudi Aramco, the Middle Eastern oil giant, ranks third.
According to industry data, the current market value of Saudi Aramco is approximately $2 trillion. More than 90% of the company's shares are held by the Saudi government, with less than 2% of the shares available for investors to trade.