Nvidia
marked a noteworthy accomplishment as it briefly surpassed the
stock market capitalization
of Google-parent Alphabet on February 14. Recognized as a prominent figure in artificial intelligence (AI), Nvidia momentarily claimed the position as the third-largest U.S. company. This surge in valuation was fueled by strong demand for Nvidia's chips, extensively employed in AI computing.
With a remarkable 231% surge in its stock over the last 12 months, the
company
reached record highs, propelling its market value to an impressive $1.83 trillion.
In comparison, Alphabet’s market capitalisation stands at $1.82 trillion.
Nvidia’s remarkable performance this year has propelled it to the top spot among S&P 500 components, surpassing even the components of the famed “Magnificent Seven.” Just days before reporting its fourth-quarter results, Nvidia also outpaced Amazon.com in market value, securing the fifth spot. Notably, Microsoft previously overtook Apple to become the largest U.S. company.
Wall Street analysts anticipate Nvidia’s fourth-quarter profit to soar to $11.38 billion—an astounding 400% increase from the previous year. Furthermore, the company’s revenue is expected to surge more than three-fold, reaching $20.37 billion.
Currently trading at 33.19 times its forward earnings estimates, Nvidia’s valuation exceeds the industry median multiple of 27.35, according to LSEG data. This higher multiple suggests that the stock may have already priced in its earnings potential, leaving limited room for further growth.
Largest US companies by market value
Earlier this year, Microsoft overtook Apple to become the largest US company. And last week, Nvidia exceeded Amazon.com's market value, leaving the retail giant in the fifth spot. So, the top five biggest US companies by market value are Microsoft, Apple, Google-parent Alphabet, Nvidia and Amazon (in the same order).
