It’s official: Nvidia Corp. is worth more than Amazon.com Inc.
The chip company hadn’t finished a trading session worth more than the e-commerce powerhouse in nearly 22 years, but it achieved the milestone Tuesday — after flirting with the feat a session earlier.
Nvidia’s
NVDA,
market value exceeded that of Amazon
AMZN,
based on Monday’s intraday action, but Amazon closed out that session back on top. But while Nvidia and Amazon shares both fell Tuesday alongside broad market pressure, Nvidia’s stock saw smaller declines, thus giving the hardware giant the edge.
See also: Nvidia’s stock could ride to $800, says Goldman Sachs. Here’s its path.
Nvidia had a closing market value of $1.78 trillion Tuesday, making it the fourth-largest U.S. company by market value. The company has been rising through the ranks: It was the seventh-largest company a year ago, the 12th-largest three years ago, and not even in the top 20 four years ago, according to Dow Jones Market Data.
Amazon, meanwhile, finished Tuesday’s trading day with a $1.75 trillion market value.
Nvidia can now set its sights on passing Alphabet Inc.
GOOG,
GOOGL,
which closed Tuesday worth $1.81 trillion.
See also: Nvidia’s stock could ride to $800, says Goldman Sachs. Here’s its path.
The chip giant is due to report earnings next week, and Wall Street is expecting blowout numbers once again. The FactSet consensus calls for $20.2 billion in total revenue, up from $6.5 billion a year before, but UBS analyst Timothy Arcuri sees room for upside. He recently wrote that the company could deliver $23 billion in revenue for the latest quarter before forecasting $25 billion to $26 billion for the current one.
Nvidia has been supply constrained amid rampant demand for its AI hardware, but lead times have been coming down such that shipment slots remain open for the second half of the calendar year, according to Arcuri.
“Normally, this is bad, but demand for AI compute capacity is still so strong, in the near term, we think this just points to significant upside potential to shipments/revenue,” he wrote, as he lifted his price target to $850 from $580.
See also: Jeff Bezos just sold $2 billion in Amazon stock. That doesn’t mean you should sell too.
