Nvidia's market cap officially surpassed Amazon's at Tuesday's close. That suggests strong demand for the semiconductors that run cutting-edge artificial intelligence and increased investor interest in the companies that make the chips. NVIDIA's stock price fell 0.17% on Tuesday to close at $721.28, with a market value of $1.78 trillion. In comparison, Amazon's stock price fell 2.15% to close at $168.64, with its market value falling to $1.75 trillion.
Although Nvidia's market capitalization briefly surpassed Amazon's during Monday's trading, this is the first time since 2002 that Nvidia's market capitalization has surpassed Amazon's after the close.
In 2002, Nvidia's main product was graphics cards for gaming PCs. But thanks to strong demand for Nvidia's artificial intelligence chips, the company's stock price has risen more than 246% in the past 12 months.
Amazon isn't slowing down, either. The company reported better-than-expected quarterly profit on February 1, showing it had successfully controlled expenses after cutting 27,000 employees over the past year. Amazon shares are up about 78% in the past 12 months.
Nvidia will announce quarterly earnings on February 21. Analysts expect sales to rise 118% year over year to $59.04 billion.