Surpassing Amazon in One Day, Alphabet Surpasses It
Focus on Earnings Announcement on the 21st
Nvidia, a leader in artificial intelligence (AI) semiconductors, has surpassed Alphabet, Google's parent company, to become the third-largest company by market capitalization. This comes just one day after overtaking Amazon to rise to fourth place in market cap rankings.
On the 14th (local time) in the New York stock market, Nvidia's stock price closed at $739, up 2.46% (17.72 points) from the previous trading day. It set a new all-time high once again. With this, Nvidia recorded a market capitalization of $1.83 trillion, surpassing Alphabet's $1.82 trillion to leap to the third-largest company by market cap. Based on the previous day's closing price, Nvidia surpassed Amazon's market cap for the first time in 22 years since 2002, and just one day later, it also overtook Alphabet's market cap.
Now, only Microsoft (MS) and Apple remain ahead of Nvidia in terms of market capitalization. MS and Apple have market caps of $3.04 trillion and $2.84 trillion, respectively.
Nvidia's stock price surged 239% last year and has risen another 49% so far this year. This explosive stock price growth is because Nvidia is considered the biggest beneficiary of the AI boom. Nvidia controls 80% of the advanced AI semiconductor market, and companies have to wait months to secure Nvidia's cutting-edge AI semiconductors, which are in short supply.
The market is awaiting Nvidia's earnings report scheduled for release on the 21st. According to LSEG, driven by increased demand for advanced AI semiconductors, Nvidia's quarterly revenue for the period ending in January this year is expected to exceed $20.37 billion, more than tripling. Adjusted net income for the same period is forecasted to increase by 400% to $11.38 billion.
Some analysts warn that if Nvidia's earnings fall short of expectations, the momentum of the AI rally could weaken significantly.
Jake Dollarhide, CEO of Longbow Asset Management, said, "The market perceives Nvidia as the AI king. However, if Nvidia reports a poor quarter and its results do not significantly exceed investors' expectations, its stock could fall 20-30% in after-hours trading."
Meanwhile, fueled by the AI boom, the stock prices of MS and Meta, Facebook's parent company, also rose 0.97% and 2.86%, respectively, on the same day. Meta closed at $473.28, setting a new all-time high.
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