AI boom: Nvidia overtakes Amazon in terms of market value

Nvidia has become more expensive than Amazon, as the demand for chips used in AI computing has grown significantly over the past year.

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Nvidia grew by more than $730 million, bringing the company's market value to approximately $1.82 trillion. At the same time, Amazon has fallen by 1.2% over the past year and is now valued at $1.81 trillion. Thus, the chipmaker ranked fourth among the most expensive companies after Microsoft, Apple, and Google's owner Alphabet.

In the second half of 2023, Nvidia shares began to grow rapidly - by almost 50%. That's because there has been a high demand for their chips, which are used in data centres for complex computing tasks, such as AI.

However, Amazon can also rejoice in the good news, as last week its shares jumped as much as 8% after reporting strong sales in the fourth quarter and providing a profit forecast that exceeded estimates. By the way, the company briefly overtook Alphabet.

The last time Nvidia was more valuable than Amazon was in 2002, when each was worth less than $6 billion.

Source: Reuters