Nvidia has surpassed Alphabet in market capitalization on Wednesday, a feat achieved just a day after it overtook Amazon. According to Bloomberg reports, the chip maker’s stock now holds a value of $1.83 trillion, edging past Google owner’s market cap of $1.82 trillion by a narrow margin. This elevates Nvidia to the position of the world’s fourth most valuable company in the midst of the AI boom, trailing behind Microsoft ($3.04T), Apple ($2.84T), and Saudi Aramco.
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Notably, Nvidia is currently producing the H100 chip, which powers the majority of LLMs (Large Language Models) in operation today, including OpenAI’s ChatGPT and a significant portion of AI projects from tech giants like Microsoft, Meta, and Amazon.
The tech industry’s major players are engaged in an AI chip arms race, each striving to develop its own GPU chip to challenge Nvidia’s dominant position. Ironically, Nvidia’s substantial sales of AI chips are attributed to these same companies. As highlighted by Bloomberg, Nvidia is on the verge of introducing an enhanced AI chip, the H200, boasting increased memory capacity and bandwidth compared to its predecessor.
Reuters recently reported that Nvidia has allocated $30 billion toward a unit dedicated to assisting other companies in producing their own custom AI chips. This means that even if companies choose to develop their own AI chips, Nvidia stands to benefit.
In the meantime, competitors such as Intel and AMD are diligently working on their own formidable chips that could potentially rival the capabilities of the H200.
