Today, Nvidia (NASDAQ:NVDA) achieved a new milestone, though it may be a tenuous one. The artificial intelligence (AI) and semiconductor leader saw shares surge today to the point that it passed Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) as the world’s third-largest publically traded company by market value. NVDA stock has been rising steadily all month, demonstrating that the AI boom that rocked markets in 2023 is far from over. This morning’s surge carried the company to a market capitalization of $1.832 trillion, just above Alphabet’s $1.814 trillion. While shares have fluctuated somewhat since then, Nvidia still managed to close the day out a hair above Google’s parent company, just behind Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL). This feat from Nvidia is noteworthy for a few reasons.
NVDA Stock: What to Watch
Nvidia also surpassed another tech sector giant yesterday. The chipmaker currently boasts a higher valuation than Amazon (NASDAQ:AMZN) thanks to Tuesday’s NVDA stock surge. Dow Jones Market Data shows that Nvidia hasn’t risen above Amazon since April 18, 2022. Now, it sits solidly above the e-commerce leader with a market cap of $1.83 trillion to Amazon’s $1.78 trillion.
Nvidia is also preparing to report earnings on Feb. 21, and analyst expectations are high. As Fast Company reports: “Wall Street expects Nvidia to post $11.38 billion in fourth-quarter profit, up more than a staggering 400% from a year ago. Its revenue is expected to surge more than three-fold to $20.37 billion.”
If it can meet or beat out the current forecasts, NVDA stock could easily solidify its position as the world’s third-highest market value. It’s true that Nvidia has a high threshold to meet with such high profit and revenue predictions. But there’s no reason to suspect that it won’t, especially with the impressive year the company has had and the steep demand for Nvidia’s products. Per InvestorPlace contributor Chandler Capital:
“The AI market has been rapidly expanding for the past year, with a near 100% growth. This is only going to get larger with Bloomberg Intelligence claiming that the industry could grow at a CAGR of 42% over the next ten years. The good news is that currently, NVIDIA has a staggering 92% market share, a drastic advantage that it will hold on to well into the real AI revolution.”
Big Things to Come
With that in mind, it’s not hard to see why these experts expect big things from Nvidia in the near future. Other firms, such as Susquehanna, are raising their price targets, even after NVDA stock has risen 68% over the past six months. Unless Alphabet reports a new catalyst soon, it could find itself slipping further behind Nvidia on the list of the world’s largest companies.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
