By Krystal Hur | CNN
New York — Wall Street’s favorite artificial intelligence darling is continuing to swell to staggering heights.
Nvidia’s market capitalization rose to $1.83 trillion on Wednesday, nudging past Alphabet’s $1.82 trillion market cap.
Shares of the Santa Clara-based chipmaker rose 2.5% to $739 a share, while Alphabet shares ended the session at $145.94.
Earlier this week, Nvidia surpassed Amazon, closing with a higher market cap on Tuesday for the first time since 2002.
Nvidia shares have been on a tear since 2023, when investors swept up in AI hype bought up shares of Big Tech stocks, spurring a bull market against a backdrop of sky-high interest rates and leading the S&P 500 index to jump 24% last year.
Nvidia has been the biggest beneficiary of the AI mania dominating Wall Street. The stock is up 49% this year after soaring 239% in 2023.
Most of the Magnificent Seven, the group of tech stocks that have led the bull market, have continued to race even higher this year with Nvidia leading the pack. But some investors are skeptical that they can match their staggering gains from last year.
“The valuation for this company is based on a very rapid growth rate. Anything that could potentially derail that growth rate would have a very negative impact on that valuation,” wrote Dave Sekera, chief US market strategist at Morningstar, in a note on Monday. “Investors should proceed with caution.”
Nvidia CEO Jensen Huang recently said it is important to democratize AI technology, and that the AI titan should provide that capability.
“There’s a sovereign AI movement that’s happening everywhere. Every country should protect their own data,” Huang told CNN at the World Government Summit in Dubai. “We need to enable every region to create their own digital intelligence.”
CNN’s Gayle Harrington contributed to this story.
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