This AI company just became more valuable than Google’s parent – National

This AI company just became more valuable than Google’s parent - National


Nvidia overtook Google-parent Alphabet’s stock market capitalization to become the third biggest U.S. company on Wednesday, days before the poster child of AI boom is due to report fourth-quarter results.

Strong demand for the Silicon Valley company’s chips used in artificial intelligence computing has powered the stock 231 per cent in the past 12 months to record highs, taking its market value to $1.83 trillion.

In comparison, Alphabet’s market capitalization is $1.82 trillion.

A 50 per cent surge this year has lifted Nvidia to the top spot among the S&P 500 components stock performance, surpassing even the components of Magnificent Seven.


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Earlier this week, it exceeded Amazon.com’s market value, leaving the retail giant in the fifth spot. Microsoft overtook Apple last month to become the largest U.S. company.

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Click to play video: 'Gamechangers, trends, and concerns — how AI is dominating the tech space'


Gamechangers, trends, and concerns — how AI is dominating the tech space


Wall Street expects Nvidia to post $11.38 billion in fourth-quarter profit, up more than a staggering 400 per cent from a year ago. Its revenue is expected to surge over three-fold to $20.37 billion.

Nvidia now trades 33.19 times its forward earnings estimates, above the industry median multiple of 27.35, per LSEG data.

A higher multiple indicates the stock is more likely to have priced in its earnings potential, leaving little room for further growth.

— Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur

&copy 2024 Thomson Reuters





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