"Its $4.5 trillion market cap makes Nvidia Corp. ( NASDAQ: NVDA) the most valuable company in the world. That puts it well ahead of Apple and Alphabet, which have market caps near $3.9 trillion. What is more staggering is that even if Nvidia's market cap dropped 50%, it would be worth slightly less than Amazon ($2.6 trillion) and much more than Meta Platforms Inc. ( NASDAQ: META) ($1.6 trillion). This shows the huge advantage of being the company that powers the AI revolution almost single-handedly."
"Nvidia may be known as an arms dealer. That is, it provides companies at war over artificial intelligence with the one thing they absolutely must have. Without its chips, none of the big players can build their arsenals to pound away at one another. From Meta to Microsoft to OpenAI or Grok, none has a huge revenue base that is growing at a rate of 60% a year, a number that could accelerate."
Nvidia's market capitalization reached $4.5 trillion, surpassing Apple and Alphabet near $3.9 trillion and dwarfing Amazon and Meta. Even a 50% decline in market cap would still leave Nvidia near Amazon's value and far above Meta. Nvidia dominates global AI chips with over 90% market share and recently posted revenue growth of 62% year over year to $57 billion and earnings growth of 67% to $1.30 per share. Nvidia holds investments in 138 mostly AI-related companies, including CoreWeave, ARM, Applied Digital, OpenAI, Anthropic, and xAI. Recent access to Chinese customers could add tens of billions in sales, and CEO Jensen Huang projects $50 billion opportunity.
Read at 24/7 Wall St.
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