Nvidia’s market: The recent boom in artificial intelligence and the hype around this emerging industry have been good business for chipmaker Nvidia and its shareholders. So much so that the company’s market capitalization is now more than twice that of Bitcoin.
US semiconductor giant Nvidia has been one of the biggest beneficiaries of the renewed interest in all things artificial intelligence (AI) industry.
Nvidia stock and market cap reach record high
On February 6, the macroeconomic journal Kobeissi Letter observed that Nvidia had a market capitalization of around $950 billion at the end of October.
Since then, it has surged 79% and just reached a record market capitalization of $1.7 trillion.
“In other words, Nvidia added $750 billion in market cap in 70 trading days.”
That’s an average of $10.7 billion per day for 70 consecutive trading days, he adds. This is equivalent to adding the total market capitalization of Tron (TRX) every day during the period.
Nvidia’s market capitalization is more than six times that of Ethereum and more than double that of Bitcoin.
Nvidia is less than 3% away from its success Amazon, the fifth-largest public company in the world. Just two years ago, Nvidia was barely among the 20 largest public companies in the world, Kobeissi noted before remarking:
Furthermore, the company stock price exceeded $700 to an all-time high after-hours on February 5. NVDA prices are up 6.2% since trading began this week.
More powerful chips
The Nvidia range of powerful chips is an integral part of the expansion plans of cloud computing giants such as Microsoft and Alphabet, in addition to Meta and Amazon.
Additionally, the company is set to add another powerful chip, the next-generation B100 Blackwell, to its AI-focused lineup later this year.
Toshiya Hari, an analyst at Goldman Sachs targets a stock price of $800, citing continued growth and stating:
He added that Nvidia will remain the industry benchmark for the foreseeable future, given the growth of AI innovations.