Chipmaker Nvidia Overtakes Amazon in Market Cap
Chipmaker Nvidia (NVDA) has surpassed online retailer and cloud computing infrastructure provider Amazon (AMZN) in market capitalization, signaling the growing excitement around artificial intelligence. While they briefly switched spots on Monday, this is the first time that Nvidia has held a higher market cap than Amazon at the end of a trading day.
Nvidia’s Market Cap and Trading Volume
At the close of the US markets on Tuesday, Nvidia’s market cap stood at $1.78 trillion, with an average daily trade volume of $47.85 million over the past month. In comparison, Amazon closed at $1.75 trillion with $49.75 million in daily trades.
Stock Performance
Both companies experienced a decline in their stock prices on Tuesday, with Amazon dropping by 3.7% to $168.64 and Nvidia receding by 1.2% to $721.28. However, both have been performing well overall.
Nvidia’s Rise in the Tech Industry
While Amazon has been recognized as a top US tech stock, part of the FAANG group (Facebook, Apple, Amazon, Netflix, and Google), Nvidia has been rapidly gaining ground. The company was named the Decrypt Emerge 2023 Company of the Year and achieved double-digit stock gains last summer. Its market cap even surpassed that of the entire crypto industry.
AI’s Impact on Amazon
Last week, the head of AWS cloud computing at Amazon expressed skepticism about the hype surrounding AI-based companies, comparing it to the dot-com bubble. However, strong AI investments have positively impacted Amazon’s financial results, with numerous AI clients and projects contributing to its quarterly performance.
Nvidia’s Future Goals
If Nvidia maintains its current position, it may next aim to surpass Google, which holds the third spot in market cap with $1.81 trillion.
Hot Take: Nvidia Surpasses Amazon as AI Hype Grows
Chipmaker Nvidia has overtaken online retailer Amazon in terms of market capitalization, reflecting the increasing enthusiasm for artificial intelligence. This shift signifies Nvidia’s rise in the tech industry and its impressive stock performance. Despite Amazon’s skepticism about AI’s hype, the company has seen positive results from its AI investments. As Nvidia continues to climb the ranks, it may soon set its sights on surpassing Google in market cap. The competition among these tech giants demonstrates the ongoing importance and potential of AI in shaping the future of technology.
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