Nvidia’s market cap is growing so fast, already breathing down Amazon’s and Alphabet’s neck thanks to increasing AI demand

Since the beginning of 2024, Nvidia’s market cap has increased by almost 50%, jumping from just under $1.2 trillion to now $1.72 trillion. Year over year, Team Green is up more than 300% thanks to the great demand for AI accelerators, and the company is already close to catching up with the 4 biggest companies in the U.S. For reference, Amazon is currently sitting at $1.76 trillion, while Alphabet (Google) is not far ahead at just above $1.8 trillion. With the rapid rise and the ever increasing demand for AI hardware, it would not be too surprising to see Nvidia soon reaching the “endgame boss” league where Apple is sitting at $2.91 trillion and Microsoft is reigning supreme at $3.08 trillion.

Bloomberg reports that, in the past two months alone, Nvidia added Tesla’s entire market cap. However, there are concerns that such gains might not be sustainable, and investors are eagerly awaiting Nvidia’s projections that should be shared in this month’s latest earning call. Nvidia remains at the top of the Nasdaq 100 best performing companies, a position that was earned in early 2023. Team Green is also now a member of the “Magnificent Seven” together with Tesla, Meta, Amazon, Alphabet, Apple and Microsoft, and has been outperforming each and every one of them in the past year.

Due to the tremendous demand for Nvidia AI accelerators, the company essentially holds a monopoly in the market, but Intel and AMD, as well as other smaller companies, are now trying to offer viable alternatives in order to break said monopoly. It might take a few more years before we actually see healthy competition in the AI hardware market, but for now, Nvidia seems poised to rise even more.

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