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Nvidia: enthusiasm for AI makes it the fourth largest company in the world by market capitalization

Nvidia: enthusiasm for AI makes it the fourth largest company in the world by market capitalization
February 23, 2024 – 09:36

This performance places it as the third largest company in the United States, surpassing technology giants such as Amazon.com Inc. and Alphabet Inc., and falling only behind Microsoft Corp and Apple Inc.

The Morgan Stanley report also highlights the upcoming B100 product cycle as a key catalyst for investment, market share and pricing.

Nvidia Corp reached a significant milestone by becoming the fourth largest company of the world by market capitalization, registering an impressive increase of 16.4% this Thursday after exceeding analyst expectations in its quarterly results. This success prompted the market capitalization of the company by US$740.2 billion this year, marking the largest increase globally.

Nvidia’s market capitalization now stands at $1.96 trillion, a notable increase from $1.52 trillion at the end of January. This performance places it as the third largest company in the United States, surpassing technology giants such as Amazon.com Inc and Alphabet Inc, and falling only behind Microsoft Corp and Apple Inc.

Worldwide, Nvidia is positioned as the fourth largest company, second only to Saudi Aramco. Its notable 58.5% jump in the stock during 2024 has played a pivotal role in the overall performance of the S&P 500 indexcontributing with more than a quarter of its increase this year.

Nvidia: the biggest stock in the world?

Analysts are alert to the possibility that Nvidia continue driving new increases, since its performance has been key in the growth of the technology sector. Cloud capital spending is expected to increase, benefiting Nvidiaaccording to Brian Colello, Morningstar strategist.

Morgan Stanley reaffirmed its overweight rating on Nvidia and raised the stock price target to $795. The firm highlights strong short-term demand and sustained investment from hyperscalers as driving factors. Despite recognizing the possibility of a cycle of excess orders in the semiconductor industry, Nvidia’s growing supply is expected to balance the market.

The Morgan Stanley report also highlights the upcoming B100 product cycle as a key catalyst for investment, market share and pricing. Although customer spending is perceived as a limiting factor for growth, it is anticipated that the B100 will continue to be a significant driver. The price target adjustment reflects a target multiple of 35 times estimated earnings per share, against the backdrop of the rally in other computing companies with exposure to artificial intelligence.

Source: Ambito

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