In a surge fueled by the growing enthusiasm surrounding artificial intelligence, Nvidia momentarily surpassed Amazon.com in market capitalisation on Monday, securing its position as the fourth most valuable US company. At a remarkable peak of $734.96 per share, Nvidia’s market value reached $1.82 trillion, edging past the $1.81 trillion valuation of retail giant Amazon.com. This milestone placed Nvidia just a few billion dollars shy of Google-owner Alphabet’s market cap of $1.87 trillion, as per data from LSEG.

This marks a significant moment as the last time Nvidia held a higher valuation than Amazon was back in 2002 when both companies were valued at under $6 billion.

Investors are eagerly awaiting Nvidia’s quarterly results, scheduled for release on February 21, following Amazon’s strong performance in holiday quarter sales. Nvidia has seen its shares surge by 47 per cent year-to-date, positioning it as the top gainer among S&P 500 components.

Nvidia’s impressive quarterly results from a year ago, coupled with robust forecasts, solidified its leading position in supplying chips to tech companies involved in generative AI applications, such as chatbots and image creation. The heightened demand for strong AI capabilities has propelled Nvidia’s shares, making it the best-performing stock among the “Magnificent Seven,” with a remarkable 223 per cent surge over the past 12 months. Following Nvidia, Meta Platforms takes second place with a 163 per cent rise.

Microsoft’s AI Bet Pays Off Big

Earlier in January, Microsoft surpassed Apple to claim the title of the world’s most valuable company, with Alphabet securing the third spot in market capitalisation rankings.

In recent developments, Microsoft solidified its position as the world’s second most valuable company, closely trailing Apple. Over the course of the year, a fierce rivalry has unfolded between the two tech giants as they vie for the coveted top spot in market capitalisation on Wall Street. In January, Microsoft briefly seized the lead from Apple, marking a momentary shift in leadership.

During this latest surge, Microsoft’s shares soared to an all-time high of $405.63, reflecting a notable 1.7 per cent increase. This surge propelled Microsoft’s market capitalisation beyond the $3 trillion mark. However, as trading concluded, the stock saw a slight pullback, settling at $402.56, resulting in a valuation just under the significant $3 trillion threshold.