This article originally appeared on Business Insider.
Nvidia overtakes Alphabet to become the third most valuable company in the US
Nvidia's stock price has risen 3.64% in the past five days alone, and its market capitalization is now worth $1.83 trillion, Reuters reported on Tuesday. Alphabet, Google's parent company, has a market capitalization of $1.82 trillion.
The chipmaker's valuation now trails only Microsoft and Apple.
Nvidia's stock price has been in the doldrums for months, with its stock up 51% this year alone. The company's market capitalization surpassed Amazon's on Monday for the first time since 2002, when both companies were languishing during the dot-com crash.
A major factor driving chipmakers forward is the AI boom that has ushered in a surge in demand for semiconductors. AI models require semiconductors capable of running cutting-edge technology, and Nvidia is one of the chip industry's biggest players.
The company's impressive rise has given it a valuation that exceeds that of China's stock market and is equivalent to Spain's entire GDP, BofA noted.
The AI hype has spilled over into other tech stocks. Fellow semiconductor company ARM has soared 81% in the last month, and the iShares Semiconductor ETF has also risen 10% since mid-January.
Some analysts say Nvidia stock could have further upside. Bank of America expects the stock to reach $800, primarily because “enterprise genAI adoption has not yet begun.” The stock price is currently around $725.
Meanwhile, other experts are comparing the company's blockbuster stock returns to those of the dot-com era. Rob Arnott said the chipmaker was a “textbook story of big market delusion” and that when the bubble burst, it would be a domino effect and the market would expand further.
