The ongoing artificial intelligence rally has resulted in Nvidia Corporation NVDA surpassing Alphabet Inc. GOOGL GOOG in market capitalization, just a day after overtaking Amazon.com, Inc. AMZN.
What Happened: At the time of writing, Nvidia’s market cap had reached $1.825 trillion, edging past Alphabet’s $1.820 trillion. This makes Nvidia the world’s fourth most valuable company, following Microsoft Corporation, Apple, and Saudi Aramco, with a market capital of $3.042 trillion, $2.843 trillion and $2.072 trillion, respectively.
Nvidia is currently producing the highly sought-after H100 AI processor, which powers the majority of Large Language Models in use today, including OpenAI’s ChatGPT and various AI projects from Microsoft, Meta Platforms and Amazon.
See Also: Nvidia, AMD Stocks Slip Premarket Despite Price Target Boosts: What’s Going On?
Nvidia’s market cap surge is a testament to its growing influence in the tech industry, particularly in the AI sector. The company’s GPUs have become a cornerstone of modern technology development, being used across various segments, including data centers, automotive, and other industries.
This surge in the AI sector has also led to the CEO of Nvidia’s rival, Advanced Micro Devices Inc. AMD, becoming a billionaire. The wealth of Lisa Su, the CEO of AMD and distant cousin of co-founder and chief executive of Nvidia, Jensen Huang, has surged to $1.2 billion as AMD’s stock doubled over the past year, reported Bloomberg.
Meanwhile, Huang is currently worth $65.2 billion, according to the Bloomberg Billionaire Index.
The presence of two billionaire chipmakers within a single family underscores the magnitude of the AI frenzy. However, these two particular billionaires are not that close, despite being family, reported Business Insider. The duo reportedly did not grow up together and migrated to the U.S. at different points in their life.
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 thus far, representing 96% of the total wealth increase recorded on the Bloomberg Billionaires Index.
However, some worry 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. Although Nvidia plays a crucial part in AI advancement, Ark adjusted its holdings due to concerns about its "really expensive" valuation, demonstrating the firm’s agile investment strategy in response to market fluctuations.
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