Nvidia, $NVDA, market cap has surpassed the size of Canada's economy, per Bloomberg.
Last week, $NVDA had a larger market cap than $GOOGL.
Nvidia's market capitalization surpassed that of Google's parent company, Alphabet, on Wednesday, marking another milestone driven by the artificial intelligence boom propelling the chipmaker's stock.
Nvidia's stock rose over 2% to close at $739.00 per share, giving it a market value of $1.83 trillion, slightly edging out Google's $1.82 trillion market cap. This development comes just a day after Nvidia surpassed Amazon in market value.
This shift underscores Nvidia's status as a Wall Street favorite, fueled by robust sales of its AI server chips, which can cost upwards of $20,000 each. Companies like Google and Amazon require thousands of these chips for their cloud services. Prior to the AI boom, Nvidia was primarily known for its consumer graphics processors for gaming computers, a less lucrative market.
While Google was expected to benefit from AI, especially given its employees' contributions to AI techniques like transformer architecture, Nvidia has emerged as a dominant player in the AI chip market.
Despite Google's 55% stock growth in the past year, the company has faced challenges such as layoffs and internal culture issues as it integrated AI services into its products. Recently, Google announced Gemini Advanced, a $20 per month AI subscription, as one of its first paid generative AI products.
Nvidia is now the third-largest U.S. company by market capitalization, trailing only Apple and Microsoft. The company is set to report its quarterly earnings on Feb. 21, with analysts anticipating a 118% annual growth in sales to $59.04 billion.
