Nvidia is now worth more than Amazon as its stock continues red-hot surge

Four years ago, Nvidia Corp. didn’t even rank among the top 20 U.S. companies by market capitalization. Now it’s poised to take over the No. 4 spot, having just passed Amazon.com Inc. based on intraday action Monday.

2.1% stock rally as of midday Monday comes as Amazon’s stock
is off 0.6%. Nvidia hasn’t finished a session worth more than Amazon since April 2002, when Nvidia was worth $5.73 billion and Amazon was worth $5.32 billion, according to Dow Jones Market Data.

Now, Nvidia is on track to finish Monday’s session with a $1.82 trillion market value, while Amazon is on pace to close with a $1.80 trillion valuation.

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Dow Jones Market Data

The chipmaker’s continued climb illustrates the company’s dominant position in the market for artificial-intelligence hardware and Wall Street’s growing confidence about the sustainability of its momentum.

See also: Nvidia’s stock could ride to $800, says Goldman Sachs. Here’s its path.

Several months ago, Wall Street seemed a bit more worried about the sustainability of Nvidia’s strength, namely wondering whether the company was due for a comedown in calendar 2025 if customers pause to “digest” inventory purchased during this current period of supply constraints.

Currently, though, “more investors are convinced next year is going to be a growth year,” Melius Research analyst Ben Reitzes wrote in a note to clients Monday.

Nvidia’s stock — fresh off its fifth week in a row of gains — is rallying again Monday, and that momentum isn’t lost on Reitzes.

“Why does Nvidia seem to go up every day so far this year?” Reitzes asked in a note to clients Monday. Then he offered a simple answer to his own question: “Things are still good.”

Not only is there increased optimism about next calendar year, but also Nvidia is gaining more respect for more “nascent” parts of its business besides its graphics processing units used for artificial-intelligence applications. These include AI enterprise software and networking offerings.

Nvidia’s stock has gained nearly 250% over the past 12 months, while Amazon’s has advanced almost 80%.

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