In a significant development, Nvidia seized the lead over Alphabet in market capitalization on Wednesday, just one day after surpassing Amazon. According to Bloomberg, the chip maker’s stock is now valued at $1.83 trillion, narrowly eclipsing the market cap of Google’s parent company, which stands at $1.82 trillion.
This achievement solidifies Nvidia’s position as the world’s fourth most valuable company amid the ongoing AI revolution, trailing only behind Microsoft ($3.04T), Apple ($2.84T), and Saudi Aramco.
This success largely has to do with Nvidia’s H100 AI GPU, which is in high demand for its use in large language models (LLM) like OpenAI’s ChatGPT and others alike. At this point, nearly every tech giant has an LLM of its own and Nvidia is powering most of it.
Engaged in an AI chip arms race, the world’s leading tech behemoths are vying to develop their own GPU chips in a bid to challenge Nvidia’s dominant position in the market. Ironically, as highlighted by Bloomberg, Nvidia’s highest sales of AI chips are attributed to these very same companies.
The Santa Clara-based firm is on the brink of unveiling a cutting-edge AI chip, the H200, boasting enhanced memory capacity and bandwidth compared to its predecessor.
According to a Reuters report from earlier this month, Nvidia has invested a staggering $30 billion into developing a unit that allows companies to build their own AI chips. This means that even if companies decide to make their own AI GPUs, Nvidia stands to benefit from their endeavors.
Meanwhile, Advanced Micro Devices (AMD), a prominent rival to Nvidia, is working on competitor chips to go against the H200, though it is too early to speak of their potential success.