NVIDIA, known for its graphics chips, has been on a tear lately. It is one of the leading suppliers of AI chips, and given the incredible demand for these products, the company’s valuation has risen as investors are optimistic about future prospects. This has allowed the company’s valuation to soar over the past year, and it shows no signs of slowing down anytime soon. NVIDIA has now become the third most valuable company in the United States, surpassing Alphabet, Google’s parent company.
NVIDIA market value reached $1.83 trillion
With a market capitalization of around $1.83 trillion, NVIDIA has already surpassed Amazon and now ranks 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 ranks fourth on this list, behind Microsoft, Apple and Saudi Aramco.
NVIDIA’s valuation rise is largely driven by high demand for AI chips. Currently, 80 percent of the artificial intelligence market is provided by chips. NVIDIA’s H100 is used to power LLMs at major tech companies including Meta, Amazon, and Open AI. Meta’s Mark Zuckerberg publicly announced last month that the company would purchase 350,000 NVIDIA H100 chips by the end of 2024.