Nvidia is shooting up like a comet on the stock market. The GPU specialist surpasses Alphabet in market value and is only ahead of Microsoft and Apple in the tech sector.

Nvidia is “hot”, even on the stock market. Reuters estimates the company’s total market value, calculated by adding up all publicly traded stocks, at $1.825 trillion. With this new peak value, the GPU specialist narrowly overtakes Google parent company Alphabet ($1.821 trillion) and moves up to fourth place on the list of the most valuable companies. A few days ago it also pushed Amazon ($1.776 trillion) out of the top five.

There is a logical explanation for Nvidia’s success. Everyone wants generative AI and needs Nvidia’s GPUs for it. As a result, Nvidia’s inventory often sells out before the chips come off the production line, and Nvidia makes a profit of tens of thousands of euros per GPU sold. If you know that Nvidia is receiving orders for hundreds of thousands of GPUs at once, as Meta recently did, you can do the math.

Since January alone, Nvidia’s market value has increased by half a trillion dollars. Exactly a year ago, Nvidia was “only” worth half a trillion according to the stock market. No one dares say where the ceiling is for Nvidia, although competition is trying to appear in the form of Intel and AMD.

AI is the key to success

The fact that investors love AI is also reflected in the recent change at the top of the ranking. Microsoft recently became the most valuable company after surpassing the $3 trillion mark in late January and dethroning Apple. Microsoft also benefits from the advantages of its AI services, which significantly increase cloud sales with Azure.

It is therefore no coincidence that Apple recently demonstrated two LLMs and wants to put more AI in the iPhone. Apple recognizes that the AI ​​hype must also be used to regain the top position. In third place is the only non-IT company in the top six: the Saudi oil company Saudi Aramco.