Nvidia’s Valuation Soars, Poised to Outrank Alphabet in Market Cap By Quiver Quantitative

Quiver Quantitative – Nvidia (NASDAQ:) is on the cusp of surpassing Alphabet (NASDAQ:) in market capitalization, marking a significant milestone in the tech industry. As of Tuesday, Nvidia’s market cap stood at $1.78 trillion, slightly ahead of Amazon’s (NASDAQ:) $1.75 trillion. Alphabet, however, remains slightly ahead with a market cap of $1.81 trillion. Nvidia’s ascent reflects its dominance in the AI chip market, crucial for tech companies like Meta (NASDAQ:) and others investing heavily in AI integration.

Nvidia’s stock, ending Tuesday at $721.28, has benefited from high demand for its AI chips, despite supply constraints. Mizuho Securities raised Nvidia’s stock price target to $825, anticipating continued growth driven by AI advancements. The company’s commanding position in the high-end AI chip market, accounting for about 80% of it, has fueled a 46% increase in its stock value this year, following a more than threefold rise in 2023.

Market Overview:
-Chipmaker’s market cap nears Alphabet’s, surpassing Amazon for the first time.
-Strong AI chip demand and positive analyst estimates propel Nvidia’s stock.
-Meta, Microsoft (NASDAQ:), and others embrace AI, driving industry growth.

Key Points:
-Nvidia’s leadership in AI chips fuels stock rally and market cap surge.
-Alphabet and Amazon face pressure to stay relevant in the AI race.
-Microsoft remains at the top, while Apple (NASDAQ:) shows potential vulnerability.

Looking Ahead:
-Nvidia’s quarterly earnings on Feb. 21 could further ignite momentum.
-Focus on Alphabet and Amazon’s AI strategies and potential catch-up efforts.
-Apple’s position in the AI space and stock performance under scrutiny.

This growth trajectory places Nvidia in a competitive position against tech giants like Microsoft (MSFT) and Alphabet. Alphabet’s recent integration of chatbot technology into Google Search and its generative AI tools for cloud customers highlights the ongoing race in AI technology. However, Alphabet’s stock has seen fluctuations, dropping after failing to meet high expectations in its last quarterly report.

Nvidia’s potential overtaking of Alphabet’s market cap signals a shift in tech industry dynamics, with AI technology playing a pivotal role. The company’s market cap briefly surpassed Amazon’s on Monday but fluctuated by the end of the trading session. In contrast, Apple (AAPL), perceived as lagging in the AI race, has seen its stock drop by 4% in 2024. As Nvidia continues to gain ground, it challenges long-standing tech giants, reshaping the landscape of market capitalization and influence in the tech sector.

This article was originally published on Quiver Quantitative