Nvidia surpasses Amazon in market value, hitting $1.78 trillion

Nvidia Corporation momentarily surpassed Amazon.com Inc. in market value on Monday, marking a significant milestone in its remarkable rally fueled by surging demand for its AI computing chips. Nvidia's market value reached about $1.78 trillion, a climb of almost 0.2 percent. Despite Amazon's 1.2 percent decline, it closed with a valuation of $1.79 trillion. Nvidia briefly secured the position of the fourth most valuable U.S.-listed company, trailing Alphabet's $1.84 trillion market capitalization, with Microsoft at $3.09 trillion and Apple at $2.89 trillion.

Saxo Bank's Peter Garnry commented on the situation, stating, "Amazon was actually among the winners in the current earnings season as Amazon’s outlook is improving. Nvidia is just riding the first investment wave of the current AI boom with massive capital expenditures being deployed in data centres."

Nvidia's shares, which were range-bound in the second half of 2023, have experienced a surge of nearly 50 percent in the new year. This surge reflects strong ongoing demand for Nvidia's chips, particularly in data centres for complex computing tasks required by AI applications. In 2024, Nvidia has added approximately $600 billion in market value, surpassing its gains in the last seven months of 2023.

While Amazon had a robust start to the year, with shares rising 8 percent after reporting strong Q4 sales and a forecast exceeding estimates, its market value briefly surpassed Alphabet's during the rally. Nvidia Corporation is the final tech giant scheduled to report earnings, with its results expected on February 21.