NVIDIA, best known for its graphics chips, has been on a tear recently. It's one of the leading suppliers of AI chips and given the incredible demand for these products, the company's valuation has soared as investors are bullish on its future prospects.
This has enabled the company's valuation to skyrocket over the past year and it shows no signs of slowing down any time soon. NVIDIA has now actually overtaken Alphabet, the parent company of Google, to become the third most valuable company in the US.
NVIDIA's market value has now crossed Alphabet's
With a market value hovering around $1.83 trillion, NVIDIA has already overtaken Amazon and now sits above Alphabet as the third most valuable company in the United States. It also has a very strong position in the list of the world's most valuable companies. NVIDIA now comes fourth on that list, behind Microsoft, Apple, and Saudi Aramco.
NVIDIA's valuation increase is largely due to high demand for its AI chips. It currently supplies 80% of the AI market with chips. NVIDIA's H100 is used to power LLMs at major tech companies, including Meta, Amazon, and Open AI. Meta's Mark Zuckerberg publicly revealed last month that the company would be buying 350,000 NVIDIA H100 chips by the end of 2024.
This is great momentum that NVIDIA is carrying into next week when the company formally unveils its quarterly report on February 21. Analysts believe that the earnings results will be quite positive and may further add to its market value. The earnings estimates from various analysts suggest revenue for the quarter to top $20 billion with a 400% jump in net profit to just over $11 billion.
