The market cap of Nvidia, which manufactures graphics processors, has reached $1.83 trillion, surpassing that of Google and Amazon. After the AI boom, Nvidia’s share price has reached $722.48 and has given a return of more than 28% in the last month.
Nvidia company is known for making good graphics cards. And after the boom of Artificial Intelligence (AI), Nvidia’s shares have started running like a rocket. Due to this, Nvidia’s market cap has gone ahead of tech giants Amazon and Google Alphabet.
Due to the era of Artificial Intelligence (AI), big tech companies bought Nvidia’s Graphics Processor in large quantities, due to which Nvidia’s stock has more than quadrupled in the last 15 months. As if Wall Street stocks were flooded.
By October 2022, Nvidia company’s market cap was less than $300 billion, below that of Amazon and Alphabet. But as soon as the AI wave arrived, Nvidia’s shares started rising rapidly. Nvidia shares rose nearly 3% to a high peak of more than $740.
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With this, the market cap of Nvidia company increased to $1.83 trillion. Whereas Google Alphabet’s market cap is $1.82 trillion and Amazon’s is $1.79 trillion. Nvidia is now the fourth most valuable company in the world after Microsoft ($3.1 trillion), Apple ($2.9 trillion) and Saudi Aramco ($2 trillion).
Nvidia’s stock market history in the last 10 years has been quite good. So far the company has given a profit of 17,000% to its investors. If you had invested $1,000 in Nvidia a decade ago, it would now be worth about $175,000. Nvidia has delivered the best returns ever among all stocks in the S&P 500.
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Nvidia’s earnings before interest, taxes, depreciation, and amortization (EBITDA) have increased by more than 500% year-on-year since last quarter. Nvidia makes the semiconductor chip technology that powers generative AI, which has proven to be very good for them. Nvidia’s last quarter profit was $9.2 billion, which was less than the $22 billion profits of Apple and Microsoft, but it was commendable.
Nvidia’s third-quarter earnings report is yet to come. But whenever this report is released, it is expected that the company will register record-breaking sales and profits. If the company proves to be good in terms of profit then Nvidia’s shares will become a rocket.