The ongoing artificial intelligence rally has propelled Nvidia Corporation (NVDA) to surpass Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) in terms of market capitalization, making Nvidia the world’s fourth most valuable company.
Market Cap Surge: At present, Nvidia’s market cap has reached $1.825 trillion, edging past Alphabet’s $1.820 trillion. This puts Nvidia behind Microsoft Corporation, Apple, and Saudi Aramco, with market caps of $3.042 trillion, $2.843 trillion, and $2.072 trillion, respectively.
Nvidia’s H100 AI processor, which powers the majority of Large Language Models like OpenAI’s ChatGPT and AI projects from Microsoft, Meta Platforms, and Amazon, has contributed significantly to this surge.
The influence of Nvidia’s GPUs in the tech industry, particularly in the AI sector, has made it a cornerstone in modern technology development across various segments, including data centers, automotive, and other industries.
This remarkable growth in the AI sector has led to the CEO of Nvidia’s rival, Advanced Micro Devices Inc. (AMD), Lisa Su, becoming a billionaire. As AMD’s stock doubled over the past year, Su’s wealth has surged to $1.2 billion, reporting Bloomberg. Meanwhile, Nvidia’s CEO, Jensen Huang, is currently worth $65.2 billion, as per the Bloomberg Billionaire Index.
The presence of two billionaire chipmakers within a single family underscores the magnitude of the AI frenzy. Despite being family, these two billionaires are not as close, having reportedly not grown up together and migrated to the U.S. at different points in their lives, according to Business Insider.
Out of the 500 wealthiest individuals globally, 30 have ties to companies monitored by the Bloomberg Global Artificial Intelligence Index. These investments have collectively combined their fortunes by $124 billion so far, representing 96% of the total wealth increase recorded on the Bloomberg Billionaires Index.
However, some investors have expressed concern that this AI boom might be a bubble. Cathie Wood-led Ark Investment Management sold some Nvidia shares this week, concerned about their high price, and bought into Tesla and Meta instead. Though Nvidia plays a crucial part in AI advancement, Ark adjusted its holdings due to concerns about its “really expensive” valuation, reflecting the firm’s agile investment strategy in response to market fluctuations.
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