Nvidia took the lead over Alphabet in market capitalization on Wednesday, just one day after surpassing Amazon.
According to bloom, the chipmaker’s stock is now worth $1.83 trillion, narrowly surpassing the market capitalization of Google’s parent company, which is $1.82 trillion.
Nvidia’s position as world’s fourth
This achievement cements Nvidia’s position as the world’s fourth most valuable company during the ongoing AI revolution, trailing only Microsoft ($3.04 trillion), Apple ($2.84 trillion), and Saudi Aramco.
This success can largely be attributed to Nvidia’s H100 AI GPU, which is in high demand for use in large language models (LLM) such as OpenAI’s ChatGPT and others.
At this point, almost every major tech company has its own LLM, with Nvidia powering the majority of them.
AI chip arms race
In an AI chip arms race, the world’s leading tech behemoths are competing to develop their own GPU chips in an attempt to challenge Nvidia’s market dominance.
The Santa Clara-based company is about to unveil a cutting-edge AI chip, the H200, with increased memory capacity and bandwidth compared to its predecessor.
According to report published earlier this month, Nvidia has invested a staggering $30 billion in developing a unit that allows businesses to create their own AI chips.
This means that even if companies decide to develop their own AI GPUs, Nvidia will benefit from their efforts.
Meanwhile, Advanced Micro Devices (AMD), a major competitor of Nvidia, is developing rival chips to the H200, though it is too early to predict their success.
To read our blog on “Microsoft is making a custom AI chip to counter Nvidia,” click here