Fueled by fervent investor enthusiasm surrounding artificial intelligence, Nvidia’s stock (NASDAQ:NVDA) has skyrocketed, propelling the company to claim a coveted spot in the market cap rankings. By the close of trading on Wednesday, the chipmaker had clinched the title of the third-most valuable company in the United States, displacing Google parent Alphabet (NASDAQ:GOOGL) from its previous position.
This remarkable ascent follows hot on the heels of Nvidia surpassing Amazon just a day earlier.
As of 11:00 a.m. EST on Thursday, Nvidia boasts a market capitalization of $1.8 trillion, edging ahead of Alphabet at $1.77 trillion and Amazon at $1.75 trillion. Despite this impressive feat, the company is unlikely to surpass its current position anytime soon.
Currently, Microsoft leads the pack with a market cap exceeding $3 trillion, followed by Apple at $2.81 trillion.
On the global scale, Nvidia falls short of the state-owned Saudi Arabian oil giant, Saudi Aramco, which boasts a market cap of $2.07 trillion.
Over the past two months, Nvidia has witnessed a surge in its market capitalization equivalent to the entire worth of Tesla. With shares up over 51% year to date, driven by robust demand for its chips from artificial intelligence tool manufacturers, Nvidia stands as the top-performing component of the Nasdaq 100 Index for the year, mirroring its stellar performance in 2023 when shares more than tripled.
There appears to be significant growth potential ahead. Revenue is projected to soar by 120% in fiscal 2024, with another 60% jump anticipated next year. Recent reports from UBS have raised the target to $850 from $580, alongside an increase in estimates for earnings per share. Similarly, Mizuho Securities has raised its target to $825 from $625.
Although shares experienced a slight dip on Thursday, down 1% in midmorning trading, the overall trajectory indicates a promising outlook for Nvidia’s continued expansion and dominance in the market.
Featured Image: Megapixl
