In a significant development, Nvidia surpassed Alphabet in market capitalization on Wednesday, just one day after overtaking Amazon. According to Bloomberg, the chip maker’s stock is now valued at $1.83 trillion, narrowly exceeding the market cap of Google’s parent company, which stands at $1.82 trillion.
This achievement solidifies Nvidia’s position as the world’s fourth most valuable company amid the ongoing AI revolution, trailing only behind Microsoft ($3.04T), Apple ($2.84T), and Saudi Aramco.
Nvidia’s success is primarily attributed to its H100 AI GPU, which is in high demand for its usage in large language models (LLMs) such as OpenAI’s ChatGPT and others. Nearly every major tech company has its own LLM, with Nvidia powering a significant portion.
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In an AI chip arms race, leading tech giants are competing to develop their own GPU chips to challenge Nvidia’s dominance in the market. Ironically, Nvidia’s highest sales of AI chips come from these very competitors, as highlighted by Bloomberg.
The Santa Clara-based company is poised to unveil its cutting-edge AI chip, the H200, boasting enhanced memory capacity and bandwidth compared to its predecessor.
According to a Reuters report earlier this month, Nvidia has invested a remarkable $30 billion into developing a unit that enables companies to create their own AI chips. This means that even if companies opt to produce their own AI GPUs, Nvidia stands to benefit from their efforts.
Meanwhile, Advanced Micro Devices (AMD), a prominent rival to Nvidia, is developing competitor chips to challenge the H200, although it is too early to determine their potential success.