Get All Access for $5/mo

Nvidia Overtakes Alphabet as the 3rd Most Valuable U.S. Company The chipmaker's valuation now trails behind only Microsoft and Apple.

By Aruni Soni

Key Takeaways

  • Nvidia just overtook Alphabet to become the 3rd-most-valuable company in the U.S., Reuters reported.
  • Its shares are up 3.64% in the past 5 days alone, with a market cap of $1.83 trillion, more than Alphabet's $1.82 trillion.
  • The chipmaker's market cap surpassed that of Amazon as well on Monday.
Noah Berger via Business Insider
Nvidia just keeps growing.

This article originally appeared on Business Insider.

Nvidia just overtook Alphabet to become the third most valuable company in the U.S.

Nvidia's shares are up 3.64% in the past five days alone, giving it a market cap now equal to $1.83 trillion, Reuters reported Tuesday. Alphabet, Google's parent company, has a market cap of $1.82 trillion.

The chipmaker's valuation now trails behind only Microsoft and Apple.

Nvidia has been on a tear for months, with its stock up 51% this year alone. Its market cap surpassed Amazon's as well on Monday for the first time since 2002 when both companies were in the doldrums of the dot-com crash.

A big part of what's been propelling the chipmaker forward is the AI boom, which heralded a surge in demand for semiconductors. AI models need semiconductors that can run cutting-edge tech, and Nvidia is one of the biggest players in the chip industry.

The company's eye-watering ascent has raised its valuation to beyond that of China's stock market and is even worth Spain's entire GDP, BofA has noted.

AI hype has bled into other tech stocks, too. ARM, another semiconductor company, blasted upwards by 81% in the last month, while the iShares Semiconductor ETF is also up 10% since mid-January.

There could be even more upside to Nvidia's stock, some analysts say. Bank of America has forecasted the share price will hit $800, mainly because "enterprise genAI adoption has yet to kick off." The stock is currently sitting at about $725.

Meanwhile, other experts have compared the company's blockbuster gains to that of a dot-com era stock. Rob Arnott said the chipmaker is a "textbook story of a Big Market Delusion" — and when the bubble bursts, it will tip the dominoes for a wider market rout.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

5 Books to Help You Motivate, Unify and Build Perspective

In a post-Covid world, check out these must-read books to help build a more resilient organization, create a modern work culture and maintain a powerful growth mindset.