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Nvidia Nears Amazon’s Market Value as Rally Marches On

Nvidia Corp.’s stock has rallied so much this year that it’s now threatening to overtake Amazon.com Inc. to become the fourth most valuable US company.

Tweet on Nvida’s stock fluctuation

Bloomberg chart

Having added nearly Tesla Inc.’s entire market capitalization in the past two months alone, Nvidia is worth $1.74 trillion, just shy of Amazon at $1.77 trillion. Google-owner Alphabet, the third most valuable US company after Microsoft Corp. and Apple Inc., isn’t too far away at $1.83 trillion.

Stock’s valuation has risen this year amid stalling estimates

Next catalyst will come when it reports later this month

The shares are up more than 40% so far in 2024 amid signs that demand for its chips used in artificial intelligence computing remains strong. But the stock has run so far, so fast that it’s reigniting concerns about whether the gains are sustainable, ahead of Nvidia’s earnings due later this month.

Nvidia is the top-performing component of the Nasdaq 100 Index this year, just as it was over 2023, when shares more than tripled. The stock is by far the biggest outperformer among members of the so-called Magnificent Seven, in large part because it has shown the most significant jump in sales and profits as a result of AI-related demand.


Image: Nvidia