By In a remarkable turn of events, Nvidia Corp. has officially surpassed the market value of Amazon.com Inc. This achievement comes after almost 22 years, during which the chip company has consistently trailed the e-commerce giant. Although Nvidia did briefly hold a higher market value during Monday’s trading session, Amazon managed to regain its position by the end of the day. However, amidst a general market decline on Tuesday, Nvidia experienced smaller drops in stock price, enabling it to gain the upper hand.
With a closing market value of $1.78 trillion on Tuesday, Nvidia is now positioned as the fourth-largest U.S. company in terms of market value. This steady rise in rank is an impressive accomplishment for Nvidia, considering that it was only the seventh-largest company a year ago, the twelfth-largest three years ago, and not even in the top 20 four years ago, according to Dow Jones Market Data. On the other hand, Amazon ended Tuesday’s trading day with a market value of $1.75 trillion.
Having reached this significant milestone, Nvidia can now look towards surpassing Alphabet Inc., which closed Tuesday with a market value of $1.81 trillion. According to experts, the upward trajectory of Nvidia’s stock suggests that it has the potential to continue its ascent and aim for even greater heights, potentially reaching $800 per share.
Nvidia’s Revenue Expected to Soar According to Analyst
UBS analyst Timothy Arcuri predicts that Nvidia’s revenue for the latest quarter could reach $23 billion, surpassing the FactSet consensus of $20.2 billion. Arcuri further forecasts that the company’s revenue for the current quarter could range between $25 billion to $26 billion.
Despite being faced with supply constraints due to overwhelming demand for its AI hardware, Nvidia has managed to reduce lead times, allowing shipment slots to remain open for the second half of the calendar year.
Arcuri believes that this situation indicates significant upside potential for shipments and revenue, thanks to the continuing strong demand for AI compute capacity. As a result, he raised his price target for Nvidia shares from $580 to $850.
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