Home Markets Nvidia is the world’s fourth-biggest company by market cap on AI optimism

Nvidia is the world’s fourth-biggest company by market cap on AI optimism

by Thomas

The world’s formerly forth-quarter by estimated market cap is now top 3 at the threshold of $500 billion, which is 16.4% short jump after the official earnings report for the past quarter beat the analysts’ sentiment.

The market cap of the company has risen by $740.2 billion, the largest one across the globe in 2019.
It puts Nvidia #3 in the U.S., pushing away big tech companies like Amazon (AMZN.O) and Alphabet (GOOGL.O), and only behind two companies: Microsoft (MSFT.O) and Apple (AAPL.O).

Globally it the fourth ranked, and it being behind Saudi Aramco (2223.SE), opens new tab.
As of Thursday, the company owns a market capitalization of $ 1,96 trillion, while back in January it was only $ 1,52 trillion.

This year’s increase of more than 58.5% of Nvidia’s share has been instrumental for S&P 500’s performance and largely caused about 26% of the index’s rise in 2024. The chipmaker is under the scrutiny of analysts to find out if its share will propel further gains.

The S&P 500 index (.SPX), opens new tab closed the day at a record high on Thursday and is currently on a 6.65% YTD growth, after a 24% rise year on year, which is also mainly supported by a thriving technology sector.
“Nvidia looks to gain the most from the plans of leading cloud computing companies to expand capital expenditures to meet the demand for AI training and inference, as it appears that nearly all of this spending will end up focused on Nvidia,” said Brian Colello, analyst at Morningstar.

” We predict that sequentially in fiscal 2025, revenue will incrementally improve by a few Billions for Nvidia as supply of chips improve.”

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