AI Frenzy Puts Nvidia Ahead of Amazon in Market Value

Nvidia briefly surpassed Amazon in market capitalization on Monday, as the euphoria around AI catapulted the chipmaker to the fourth most valuable U.S. company. From a report: At a record high of $734.96, Nvidia was worth $1.82 trillion in market value, compared to $1.81 trillion for retail giant Amazon.com and a few billions away from Google-owner Alphabet's $1.87 trillion, according to LSEG data. The last time Nvidia was more valuable than Amazon was in 2002, when they were each worth under $6 billion.

AI Tech Stock Bubble

[OverlordQ]

Change my mind

Re:AI SEO via BIZX clients

[Anonymous Coward]

It's all about SEO. Slashdead is 75% "Al" fake news. Who is paying for it?

Re:

[iAmWaySmarterThanYou]

Fad after fad after fad.

Silicon Valley runs on and requires an endless supply of The Next Big Thing to keep going.

Some of them are real such as search and social media. Others are complete scams like NFT and crypto.

AI itself isn't a scam. It has real world value but the hype surrounding it is definitely fad + cultish.

Re:

[Mr. Dollar Ton]

It's understandable to have concerns about technology stocks and the possibility of an AI bubble. While I can't predict the future of the market, I can offer a balanced perspective to help you reconsider your viewpoint:

Fundamentals and innovation: Many tech companies at the forefront of the AI industry have strong fundamentals and are driving innovation across various sectors. Unlike the dot-com bubble of the late 1990s, today's tech giants have solid business models, revenue st

Re:

[Anonymous Coward]

beep boop

Re:

[Mr. Dollar Ton]

Straight from the AI's mouth.

Re:

[ShanghaiBill]

Google, Meta, Tesla, Amazon, Apple, Alibaba, and Huawei are all building custom AI silicon.

Most of them only use their custom chips internally, but that could change.

There are also many startups. They are all fabless (as is Nvidia), so they can quickly ramp up a successful design.

Nvidia is in a precarious position.

Re:AI Tech Stock Bubble

[UnknowingFool]

Also all of those companies rely on chip foundries to manufacture their chips and often the same one, TSMC. TSMC is adding capacity as much as they can but every one of the those companies has to work to get their orders placed. Apple in the past has had an advantage because they were willing to partially fund TSMC expansions in exchange for order priority as Apple has lots of cash. Other companies have had to figure out ways to get order priority if they did not have the cash.

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[Drethon]

Change my mind

Anything like a blockchain stock bubble?

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[ceoyoyo]

Nvidia exchanges money for hardware, software and services.

Have you heard the phrase "sell shovels to gold miners?"

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[timeOday]

OK, but Amazon is also considered a tech stock, so a tech bubble does not explain why NVIDIA is so highly valued compared to Amazon.

Because dumbasses are fooled by Generative AI hype

[Somervillain]

OK, but Amazon is also considered a tech stock, so a tech bubble does not explain why NVIDIA is so highly valued compared to Amazon.

Amazon is very tangible. We know what they do. We have realistic predictions of how they will do in the future. They're stable and thus, to idiots in Wall Street, boring. nVidia is the best of all worlds to them...diversified, established, fabless, and undergoing the hype of the moment. Generative AI is bullshit for many reasons I've ranted about before....the succinct story being that if it COULD do what they promised, it would. You're selling alchemy...the promise of Generative AI is to create techn

Re:

[larryjoe]

Change my mind

All markets and technologies are bubbles, with no exceptions. The only question is how long the bubble lasts. Is it a one-year bubble or a 5-decade bubble?

Also, bubbles generally refer to stock market prices. Those prices may or may not reflect well the inherent societal value of the underlying technologies for the companies in those markets.

There is no question that AI has impacted businesses and many people. Perhaps some people expect AI front-ends instead of the backend improvements for existing appl

I suffer from AI overload

[Rosco P. Coltrane]

I suffer from AI overload.
I want to spend a day without hearing about AI.
Tech bros ruin everybody's lives.
Make it stop.

Thank you. That is all.

Re:

[Mr. Dollar Ton]

Amen!

Re:

[avandesande]

Just for you generated by Haiku AI-

Futile deception,
False charm woven in deceit,
Ai's scam revealed.


Empty promises,
Deceptive algorithms,
Ai's lies unfold.


False intelligence,
Sly manipulations thrive,
Ai's scamming all.

Trickle Down Baby!

[muh_freeze_peach]

With all this cashflow they can definitely drop the prices in their gaming hardware segment, right?

Re:

[timeOday]

The market-based prediction would be that all this cashflow will attract competitors, who will eventually force NVidia's to lower their prices. Intel's re-emphasis (with the upcoming Battlemage chip) is an example of this, but of course success of any one competitor is far from guaranteed. But do I think NVidia will still be enjoying the same margins they do now in another 6 years? I don't. NVidia 2014 = Intel 1995.