AI Hype Propels Chip Manufacturer Ahead of Retail Giant

Nvidia is the big winner of the AI ​​hype. The chip and graphics card manufacturer is now among the big players in the tech industry. Even Amazon is left behind.

The still unannounced switch successor is said to have installed a special Nvidia chip. One of Microsoft’s next consoles will be powered by the company’s hardware, insiders claim. And AI, which is becoming increasingly relevant for video games, also benefits significantly from Nvidia products.

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Ultimately, it’s a situation that is also pushing Nvidia to new heights. The tech giant has now overtaken another giant on the stock market, as Bloomberg reports.

Nvidia is more valuable than Amazon

Yesterday Monday alone, Nvidia’s share value rose by up to 2.9 percent, reports the English-language publication. The market capitalization thus reached a value of 1.83 billion US dollars. This year alone, market capitalization increased by $600 billion.

This means that Nvidia is now ahead of Amazon. The shipping giant has a market value of $1.80 billion, making it the fourth most valuable listed company in the United States. In front of them are Alphabet (1.85 billion US dollars), Apple (2.9 billion US dollars) and Microsoft (3.11 billion US dollars).

“Amazon has been among the winners of the current earnings season as Amazon’s prospects improve,” said Saxo Bank’s Peter Garnry. “Nvidia is currently riding the first wave of investment in the current AI boom with massive capital expenditures in data centers.”

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Nvidia also has a strong presence in the PC market. Last month, the company launched the GeForce RTX 40 Super GPU series, for the price of which you sometimes get a console, TV and accessories, depending on the model. Sony, however, will continue to rely on AMD technology with its upcoming consoles, as was recently claimed.

RTX 4070 12GB from Asus

Looking back, Nvidia is a real money printing machine for investors. In the past 30 days, the price has increased by around 35 percent. In the last twelve months it has increased by over 230 percent. In the three-year period it was 440 percent. Investors who invested in Nvidia five years ago can look forward to an increase of almost 2,000 percent.

A steep climb can also result in a steep fall. Since the current Nvidia hype is primarily due to the AI, disappointed expectations could mean a significant loss in value. We remember the dot-com bubble.

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