Chipmaker Nvidia (NVDA) has overtaken online retailer and cloud computing infrastructure provider Amazon (AMZN) in market capitalization, a reversal that is nevertheless symbolic of the bullish hype surrounding artificial intelligence.
Although the pair briefly swapped positions on Monday, this is the first time that their respective market caps have stayed the same through the end of the trading day.
At the close of U.S. markets on Tuesday, Nvidia’s market capitalization was $1.78 trillion, with average daily trading volume over the past month reaching $47.85 million. Amazon ended the day with $1.75 trillion in daily trading, up from $49.75 million.
Shares of both tech giants closed lower, with Amazon down 3.7% to $168.64 and Nvidia down 1.2% to $721.28. But both have been booming recently.
Amazon has been widely advertised as one of the top five U.S. tech stocks in the so-called “FAANG” set (Facebook, Apple, Netflix and Google), but with the company’s name change, the acronym changed to MAMAA. But Nvidia is going out of business fast. decryption Named Company of the Year for 2023, it posted double-digit stock price gains last summer, and by fall its market capitalization surpassed all cryptocurrencies.
This year alone, NVDA is up 45%. And other chipmakers for AI have also seen their fortunes increase.
Last week, Amazon’s head of AWS cloud computing said AI-powered companies were “overvalued” and likened the current situation to the dot-com bubble and bust at the turn of the century. Nonetheless, strong AI investments across the segment and the company’s quarterly financial results citing numerous AI clients and projects boosted profitability.
If today’s turnaround holds, Nvidia could next target the $1.81 trillion market cap bronze medal currently held by Google (GOOG).
editor Ryan Ozawa.
