NVDA: Nvidia Elbows Out Amazon as Third Biggest US Company. When Will the Rally End?

Chipmaker’s market cap is now at $1.8 trillion, surpassing Top 5 mainstays Google parent Alphabet and Amazon in the same week.

• Nvidia stock NVDA is the juggernaut no one dares to bet against. Last week, the chipmaker became the third largest company in the US after bulldozing its way through Google parent Alphabet GOOGL and Amazon AMZN. The two Top 5 mainstays were left behind as Nvidia hit a $1.8 trillion valuation with shares floating at $726 a pop, or about $15 from record.
• Not too long ago, in October 2022, Nvidia was trading at $112 a share. Since then, the Wall Street darling has gone up 6.5x. The most recent run was fueled by the news that Nvidia wants to build custom AI chips for tech heavyweights Microsoft, Amazon, Meta, Google, and OpenAI. All of these but Amazon are already loyal purchasers of Nvidia’s tight supply of chips.
• With this said, how long can this breakneck rally continue? Apparently, the AI craze is driving Nvidia’s share price up more than anything else. And as long as Nvidia has a tight grip on the dwindling chip supply, outweighing demand will most likely continue to support the ‘up-only’ narrative. Right now, everyone’s assuming the AI-driven productivity gain will be there once the infrastructure is laid out.