Nvidia’s Market Capitalization Reaches $1.7 Trillion, Double That of Bitcoin

The recent boom in artificial intelligence and the hype surrounding the new industry have been a tremendous gain for chipmaker Nvidia and its shareholders. So much so that the company’s market capitalization is now more than double that of Bitcoin.

The American semiconductor giant Nvidia is one of the biggest beneficiaries of the rising interest in everything related to the artificial intelligence (AI) industry.

The macroeconomic journal Kobeissi Letter noted that Nvidia had a market capitalization of about $950 billion at the end of October. Since then, it has increased by 79 percent and has just reached a peak market capitalization of $1.7 trillion.

– In other words, Nvidia added $750 billion in market capitalization in 70 trading days – writes the Kobeissi Letter.

This amounts to an average of $10.7 billion per day over 70 consecutive trading days, it adds. This is equivalent to adding the total market capitalization of the cryptocurrency Tron every day during that period.

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

Nvidia is less than three percent away from surpassing Amazon as the fifth largest public company in the world. Just two years ago, Nvidia was barely among the top 20 public companies in the world, noted Kobeissi.

– Now they control 70-90 percent of the global AI chip market. AI has made Nvidia one of the largest companies of all time – it adds.

Furthermore, the company’s stock prices exceeded $700 in after-market trading on February 5. Nvidia’s stock price has risen by 6.2 percent since the beginning of trading this week.

Nvidia’s line of powerful chips is an integral part of the expansion plans of cloud computing giants such as Microsoft and Alphabet, along with Meta and Amazon. Moreover, the company is set to add another powerful chip, the next-generation B100 Blackwell, to its AI-focused lineup later this year.

Goldman Sachs analyst Toshiya Hari targeted a stock price of $800, citing continued growth.

– We no longer assume a decline in data center revenues this year and instead model consistent growth through the first half of next year driven by ongoing spending from major cloud service providers on generative AI infrastructure – it states in the note.

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