Four years ago, Nvidia Corp wasn't even among the top 20 US companies by market capitalization. It is now closing in on fourth place as it narrows in on Amazon.com Inc.
In fact, NVDA,
Amazon's AMZN rating has surpassed,
In intraday trading on Monday, though, the chipmaker failed to end the session on top. Nvidia ended the trading day with a valuation of $1.785 trillion, according to Dow Jones market data, while Amazon ended with a valuation of $1.790 trillion.
At Monday's highs, Nvidia's intraday valuation peaked at $1.843 trillion.
Nvidia hasn't finished a session worth more than Amazon since April 2002, when Nvidia was worth $5.73 billion and Amazon was worth $5.32 billion, according to Dow Jones market data.
The chipmaker's continued rise – which ranked seventh in terms of valuation a year ago – demonstrates the company's dominant position in the AI hardware market and Wall Street's growing confidence about the sustainability of its momentum.
See also: Goldman Sachs says Nvidia stock could reach $800. Here is her way.
Several months ago, Wall Street seemed a bit more concerned about the sustainability of Nvidia's strength, specifically questioning whether the company was set to decline in 2025 if customers paused to “digest” inventory purchased during this current period of supply constraints.
However, for now, “more investors are convinced that next year will be a year of growth,” Melius Research analyst Ben Retzes wrote in a note to clients on Monday.
Nvidia stock — after its fifth straight week of gains — rose 0.2% on Monday. Its recent momentum is not lost on the Reitzes.
“Why does Nvidia seem to be rising every day so far this year?” the Reitzes asked in a note to clients Monday. Then he gave a simple answer to his question: “Things are still good.”
Not only is there increased optimism about the coming calendar year, but Nvidia is also gaining more respect for the “emerging” parts of its business besides GPUs used in AI applications. These include AI enterprise programs and networking offerings.
Nvidia stock has gained nearly 250% over the past 12 months, while Amazon stock has advanced nearly 80%.
See also: Jeff Bezos just sold $2 billion worth of Amazon stock. This doesn't mean you should sell either.
