Nvidia's market cap closes in on Amazon, Alphabet

The news: Artificial intelligence chipmaker Nvidia is close to overtaking Amazon's stock market valuation for the first time since 2002, after an optimistic report by Morgan Stanley helped buoy its share prices.

The numbers: The US tech firm has seen its market capitalisation rocket 40% since the start of the year, reaching USD1.731 trillion ($2.66 trillion) by market close on Wednesday (Thursday AEDT).

Nvidia's stock market valuation is now only around 3% below Amazon's USD1.771 trillion value and 6% off Alphabet's USD1.823 trillion market cap. Shares in Nvidia rose 2.75% on Wednesday after Morgan Stanley raised its price target from USD603 to USD750.

The context: Nvidia is the US stock market's fifth most valuable company, after stock in the California-based firm tripled in 2023. The tech giant has benefitted in recent months from surging demand among tech companies for Nvidia's graphics processors to build AI into their products. Nvidia reports quarterly results on 21 February.