Nvidia Surpasses Amazon and Alphabet in Value

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Nvidia has recently surged past Alphabet in market capitalization, hot on the heels of its takeover of Amazon. According to Bloomberg, the chip giant’s stocks now stand at an impressive $1.83 trillion, edging out Alphabet’s $1.82 trillion by a narrow margin. This catapults Nvidia to the position of the world’s fourth most valuable company, following the AI revolution, trailing behind Microsoft ($3.04T), Apple ($2.84T), and Saudi Aramco.

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Notably, Nvidia’s latest feat is fueled by the widespread adoption of its H100 chip, which serves as the backbone for a myriad of LLMs, including OpenAI’s ChatGPT, and a plethora of AI initiatives by industry giants like Microsoft, Meta, and Amazon.

 

In the backdrop of an escalating AI chip arms race, tech behemoths are fervently vying to develop their own GPU chips to challenge Nvidia’s dominance. Paradoxically, as highlighted by Bloomberg, Nvidia’s major customers for AI chips are these very competitors. Nevertheless, Nvidia is on the brink of introducing an even more advanced AI chip, the H200, boasting enhanced memory capacity and bandwidth compared to its forerunner.

 

Recent reports from Reuters indicate that Nvidia has allocated a staggering $30 billion towards a dedicated unit aimed at aiding other companies in crafting bespoke AI chips. This strategic move ensures that even if companies opt to forge their own AI chips, Nvidia stands to gain a share of the market.

 

In the midst of this dynamic landscape, direct rivals such as Intel and AMD are diligently developing their own formidable chips poised to rival Nvidia’s H200.