Nvidia passes Alphabet in market cap and is now the third most valuable U.S. company
Summary
The symbolic milestone is more confirmation that Nvidia has become a Wall Street darling on the back of elevated AI chip sales, valued even more highly than some of the large software companies and cloud providers that develop and integrate AI technology into their products. Nvidia shares are up over 221% over the past 12 months on robust demand for its AI server chips that can cost more than $20,000 each. Before the recent AI boom, Nvidia was best known for consumer graphics processors it sold to PC makers to build gaming computers, a less lucrative market. Google was largely expected to benefit from AI, especially since employees at the company pioneered many of the techniques — such as transformer architecture — used in cutting-edge models like ChatGPT. Google shares are still up 55% in the past 12 months, though the company has grappled with layoffs and culture issues after it declared a "code red" situation to build AI services into its products.
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