Nvidia’s AI Optimism Propels Stock Past Amazon and Poised to Surpass Alphabet’s Market Cap Soon

Nvidia Stock Surpasses Amazon and Alphabet

On February 13th, Nvidia’s stock surged, pushing its market value to $1.78 trillion, exceeding that of Amazon and Alphabet. This surge is mainly attributed to the increasing demand for its AI chips, solidifying its position as a major player in the technology sector’s integration of AI into products and services. The big tech players like Meta Platforms are investing heavily in Nvidia’s products, further propelling its growth.

The rising demand for Nvidia’s graphics processors has, however, led to shortages of its components. Lead times for Nvidia’s premium H100 processor have decreased, but the overall demand remains significantly higher than the available supply, according to Mizuho analyst Vijay Rakesh.

Amidst this remarkable performance, Wall Street firms like UBS Group AG and Mizuho Securities have raised their price targets for Nvidia, with UBS increasing its target to $850 from $580 and Mizuho raising its target to $825 from $625. This increase in stock value has led to a 46 percent surge, adding approximately $560 billion in market value.

Despite this surge, analysts are struggling to keep pace with a lagging 12-month price target of $690. However, they attribute Nvidia’s success to the ongoing AI boom and massive capital expenditures in data centers. The company’s upcoming earnings report on February 21 will be closely watched to gauge its performance in the dynamic tech market.

In the competitive landscape of AI-driven technologies, Nvidia continues to make strides, posing a formidable challenge to established market leaders. With its market value soaring, the company’s AI investments have made it the top choice for many analysts and investors.

As Nvidia performs remarkably well in the market, the focus now shifts to its earnings report, which is expected to shed light on its continued growth and market dominance.