This article originally appeared on Business Insider.
Nvidia just overtook Alphabet to become the third most valuable company in the United States
Nvidia shares have risen 3.64% in the past five days alone, giving it a market capitalization now of $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 has been in trouble for months, with its stock up 51% this year alone. Its market capitalization surpassed Amazon’s on Monday for the first time since 2002, when both companies were reeling from the dot-com bust.
Much of what has pushed the chipmaker forward is the boom in artificial intelligence, which has heralded a surge in demand for semiconductors. AI models need semiconductors capable of running cutting-edge technologies, and Nvidia is a major player in the chip industry.
The company’s meteoric rise has boosted its valuation beyond that of the Chinese stock market and is even worth the entire GDP of Spain, BofA noted.
The enthusiasm for AI has spread to other tech stocks as well. ARM, another semiconductor company, is up 81% over the past month, while the iShares Semiconductor ETF is also up 10% since mid-January.
There could be further upside for Nvidia shares, some analysts say. Bank of America predicted the stock price will reach $800, mainly because “enterprise genAI adoption has yet to begin.” The stock is currently trading at around $725.
Meanwhile, other experts have compared the company’s blockbuster earnings to that of a dot-com-era stock. Rob Arnott said the chipmaker is a “textbook story of a big market illusion” – and when the bubble bursts, it will tip the dominoes for a broader market rout.