After Amazon, NVIDIA now surpasses Alphabet in market capitalization
NVIDIA is now the fourth most valuable company in the world. With a market cap of $1.83 trillion, it has surpassed the value of Amazon ($1.77 trillion) and Google's parent Alphabet ($1.82 trillion). This success is largely due to NVIDIA's dominance in the AI chip market, with its H100 chip being used in many popular large language models (LLMs) such as OpenAI's ChatGPT and projects by Microsoft, Meta, and Amazon.
NVIDIA to release an even more advanced AI chip
Despite major tech companies trying to create their own GPU chips to compete with NVIDIA, they still rely on NVIDIA's AI chips for their projects. The company is also gearing up to release an even more advanced AI chip, the H200, which promises better memory capacity and bandwidth. This puts NVIDIA in a strong position in the ongoing AI chip arms race. Globally, NVIDIA is only behind Saudi Aramco ($2.06 trillion), Apple ($2.84 trillion), and Microsoft ($3.04 trillion).
NVIDIA invests in custom AI chip development
NVIDIA has invested $30 billion into a unit that helps other companies develop custom AI chips. This means that even if competitors create their own chips, NVIDIA could still profit from their efforts. Meanwhile, rivals like Intel and AMD are also working on powerful chips that could potentially challenge NVIDIA's H200 in the future. NVIDIA will announce its earnings report on February 21. The results could further influence its market value.
