Artificial Intelligence Hype Pushes Nvidia Market Cap to $1.7T High

The recent boom in artificial intelligence and the hype surrounding the emergent industry have been gravy for chip manufacturer Nvidia and its shareholders. So much so that the company’s market capitalization is now more than twice that of Bitcoin. 

American semiconductor giant Nvidia has been one of the biggest beneficiaries of the surge in interest in anything related to the artificial intelligence (AI) industry.

Nvidia Stock and Market Cap All-Time High

On February 6, the macroeconomics outlet Kobeissi Letter observed that Nvidia had a market cap of around $950 billion at the end of October.

Since then, it has surged 79% and just hit an all-time high market cap of $1.7 trillion.

“In other words, Nvidia has added $750 billion in market cap in 70 trading days.”

That works out at an average of $10.7 billion per day for 70 trading days in a row, it added. This is the equivalent of adding the total market cap of Tron (TRX) every day for the period. 

Nvidia’s market capitalization is more than six times greater than that of Ethereum and more than double that of Bitcoin. 

Nvidia market capitalization. Source: X/@KobeissiLetter
Nvidia market capitalization. Source: X/@KobeissiLetter

Nvidia is less than 3% away from passing Amazon as the fifth largest public company in the world. Just 2 years ago, Nvidia was barely in the 20 top largest public companies in the world, Kobeissi noted before remarking:

“Now, they control 70%-90% of the global AI chip market. AI has made Nvidia one of the largest companies of all time.”

Furthermore, company stock prices topped $700 in an all-time high in after-hours trading on February 5. NVDA prices are up 6.2% since the start of trading this week. 

More Powerful Chips 

Nvidia’s lineup of powerful chips is integral to the expansion plans of cloud-computing giants such as Microsoft and Alphabet in addition to Meta and Amazon.

Moreover, the firm is set to add another powerful chip, the next-generation B100 Blackwell, to its AI-focused lineup later this year.

Read more: AI Stocks: Best Artificial Intelligence Companies To Know in 2023

Goldman Sachs analyst Toshiya Hari targeted a share price of $800, citing continued growth and stating:

“We no longer assume a dropoff in data-center revenues [this year] and instead model consistent growth through [the first half of next year] driven by continued spending on [generative-AI] infrastructure by the large cloud-service providers.”

He added that Nvidia will remain the industry gold standard for the foreseeable future, given the growth in AI innovations


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