Nvidia briefly captured the market value of Alphabet shares on Wednesday, days before the artificial intelligence company was scheduled to report fourth-quarter results.
Strong demand for Nvidia graphics cards used in artificial intelligence has sent the stock price up 231 percent over the past 12 months. At its peak on Wednesday, the company's market value reached $1.83 trillion. In comparison, Alphabet's market capitalization is $1.81 trillion.
Earlier this week, Nvidia surpassed Amazon in market cap, leaving the retail giant in fifth place. Microsoft also surpassed Apple last month to become the largest company in America.
Expectations for the fourth quarter
Wall Street expects Nvidia to report earnings of $11.38 billion in the fourth quarter, an increase of more than 400 percent from a year earlier. Revenues are expected to triple to $20.37 billion. The company is scheduled to announce results on February 21.
Nvidia now trades at 33.19 times expected future earnings, well above the industry average multiple of 27.35, according to LSEG data. A higher multiple indicates that the stock has likely priced in its earnings potential, leaving little room for further growth.
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