Nvidia share price has rallied 40% so far in 2024 with its market capitalization soaring to $1.73 trillion as on Wednesday, only about 3% below Amazon’s $1.77 trillion value.
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Nvidia is on the verge of becoming more valuable than retail giant Amazon for the first time in two decades led by the recent sharp run in its share price on enthusiasm over artificial intelligence (AI).
Nvidia share price has rallied 40% so far in 2024 with its market capitalization soaring to $1.73 trillion as on Wednesday, only about 3% below Amazon’s $1.77 trillion value.
The last time Nvidia was more valuable than Amazon was in 2002, when they were each worth under $6 billion.
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The market value of Nvidia is also less than 6% below Google-owner Alphabet’s $1.82 trillion value. Nvidia stock price more than tripled in 2023, becoming the US stock market’s fifth most valuable company.
On Wednesday, Nvidia stock price ended 2.75% higher at $700.99 after Morgan Stanley raised its target price on the stock with analyst Joseph Moore writing in a client note that “AI demand continues to surge”.
Morgan Stanley increased Nvidia’s price target to $750 from $603. The chipmaker reports quarterly results on February 21.
Nvidia has been a top beneficiary of technology companies’ race to build AI into their products and services, Reuters reported. Meta Platforms and other Big Tech companies have bought billions of dollars worth of Nvidia’s graphics processors.
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AI developers face months-long waiting lists to use Nvidia’s processors through cloud-computing providers, although those wait times are coming down, Morgan Stanley’s Moore wrote.
In January, Microsoft overtook Apple to become the world’s most valuable company. They are followed by Saudi Aramco, Alphabet and Amazon in the list of the world’s most valuable publicly-listed companies.
(With inputs from Reuters)
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Published: 08 Feb 2024, 07:47 AM IST
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