Nvidia has jumped to the fourth spot of the most-valued companies, behind Microsoft and Apple. The brand’s market capitalisation recently surpassed both Amazon and Google’s parent company Alphabet.
Nvidia GeForce might be the brand on everyone’s lips after a recent RTX 4000 Super refresh, but this pales in comparison to its AI business. The Green Team is literally making billions in the server market, supplying its AI accelerators to the entire world with products such as the H100 chip powering OpenAI’s ChatGPT. They’re so powerful, in fact, that the USA felt the need to put some restraints on their exports to unfriendly countries.
Bloomberg reports that the GPU maker is now worth $1.83 trillion, in front of Alphabet’s $1.82 trillion. Microsoft, at $3.04 trillion, and Apple, at $2.84 trillion, are still ahead.
According to Yahoo Finance’s Jared Blikre, Amazon, Meta, Microsoft, and Nvidia alone account for roughly 69% of the S&P 500’s gain this year. That’s four, albeit giant brands, making up the bulk of the lift in an index comprising 496 other companies. Meanwhile, according to a research note from Bank of America, Nvidia is worth as much as all Chinese-listed companies on the Hong Kong Stock Exchange combined.
It took decades for the stock market to see the first trillion-dollar company. But now, a new name joins the list nearly every year. That said, market capitalisation is calculated by multiplying the number of shares by their price. In other words, it’s not a true representation of a company’s assets or revenue. All you need is a Bull Run, and your value will skyrocket.
In any case, during the last few years, Nvidia has kept growing rapidly without any signs of slowing down. Those who invested early must be having a great time now.
