NVIDIA is doing very well. The chipmaker overtook Google parent Alphabet to become the third most valuable company in the United States. Reuters reports. The news comes almost immediately after Nvidia has overtaken Amazon in the rankings, with the company now valued at $1.83 trillion. Globally, it occupies fourth place, behind the American companies Microsoft ($3.04 trillion) and Apple ($2.84 trillion) and the Saudi state oil company Saudi Aramco ($2.07 trillion).
The AI boom over the past year is largely driven by NVIDIA's rising valuation, with around 80% of the high-end chip market in its hands. He created the H100 chip, which powers LLMs from OpenAI, Amazon, Meta and more. In January, Mark Zuckerberg said Meta will purchase 350,000 H100 chips from NVIDIA by the end of the year.
Unlike most companies competing to see who can advance the fastest in AI, Nvidia has his figurative hands in every basket. The chipmaker is also expanding its business by creating custom chips for cloud computing companies. This additional offering may keep NVIDIA in the mix, even if AI manufacturers are looking for more custom options.
NVIDIA's quarterly report will be released on Wednesday, February 21, and while it should be positive, anything less than great could drag down the company's valuation and, therefore, its ranking. Forecasts call for NVIDIA's quarterly profits to triple to $20.37 billion and net profits to soar 400% to $11.38 billion.