Nvidia Outshines Alphabet as Third Most Valuable Firm

In the wake of tech companies’ artificial intelligence (AI) race, Nvidia surpassed Alphabet as the US’s third most valuable company, a day after exceeding Amazon.

In the closed session, the Santa Clara-based firm’s stock surged by 2.46% to $739.00 per share, leading its value at $1.83 trillion. Meanwhile, Alphabet rose by 0.55% to $145.94 apiece, putting its value at $1.82 trillion.

However, these tech giant stocks declined in the after-hours trading. Nvidia dipped by -0.27% to $737.00 a share, while Google’s parent was down by -1.49% to $143.76 per share in the Asian afternoon session.

Nvidia has experienced significant growth due to tech companies incorporating AI into their offerings. The recent surge in its stock followed a day when its market cap surpassed Amazon’s, a milestone not achieved in the past two decades.

The multi-tech company’s stock closed the session by increasing 1.39% to $170.98 per share, leaving it with a $1.78 trillion market cap. Moreover, Amazon climbed by 0.32% to $171.52 apiece in after-hours trading.

Meanwhile, Nvidia’s 80% hold on the high-end AI chip market propelled a 47% stock increase in 2024, following a tripled performance in 2023.

The tech giant’s premium components need more supply while AI developers wait months to access its processors via cloud-computing providers.

Simultaneously, Intel and AMD, primary rivals, are developing potent chips likely to compete with the H200.

Wall Street to Observe Watch Nvidia’s Quarterly Report

Wall Street will tightly eye Nvidia’s upcoming quarterly report, expecting strong results as any deviation could impact the AI rally, causing caution among investors.

According to Jake Dollarhide, CEO of Longbow Asset Management, the firm is acknowledged as the AI leader in the market. However, failing to surpass investors’ expectations, a single subpar quarterly report might result in a 20% to 30% sell-off in one after-hours session.

Meanwhile, an analyst increased Nvidia’s stock price to $850 from his previous forecast of $625, saying he anticipates solid quarterly data and guidance.

Furthermore, experts expect a significant surge in the firm’s revenue for the January fiscal quarter, exceeding $20.37 billion, fueled by the company’s high-end AI chips.

Moreover, analysts project a remarkable climb of over 400% in the adjusted net profit, reaching $11.38 billion.

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