Amazon & Tesla Dethroned As World’s Biggest Companies By $4 Trillion AI Behemoth

That apparently no one has heard of...

Amazon & Tesla Dethroned As World’s Biggest Companies By $4 Trillion AI Behemoth


Amazon and Tesla have been dethroned by a $4 trillion AI giant following Elon Musk’s $6 billion xAI investment, sparking the first major shift of the artificial intelligence revolution.

As it turns out, you can do a lot more with AI than just reimagine Daniel Craig as an even sexier James Bond or generate the watch of your dreams; you can also make some bloke halfway around the world a hell of a lot of money.

This week, bigwigs at Tesla and Amazon got something of a rude awakening when the market cap of Nvidia — the company that effectively seels the shovels fuelling the AI gold rush — as its market cap soared to a record-breaking $2.8 trillion USD/$4 trillion AUD.

Driven by the increasing enthusiasm for artificial intelligence (AI) and recent moves by high-profile figures such as Elon Musk, this surge in stock value has significant implications for the tech and financial sectors alike… as well as for the everyday lives of you and me.

RELATED: Joe Rogan Fires Arrow At Elon Musk’s Personal Cybertruck & Fails Miserably

Musk’s AI Ambitions

The recent surge in Nvidia’s stock can be traced back to Elon Musk’s latest venture, xAI. Musk’s AI startup raised a massive $6 billion USD from investors, with plans to create a supercomputer using Nvidia’s H100 graphics processing units. This announcement not only captured the market’s attention but also contributed to a 20% increase in Nvidia’s stock value over a three-day period.

The boom was further fueled by Nvidia’s mind-boggling earnings report, which forecasted second-quarter revenue of approximately $28 billion USD, surpassing pretty much every analyst’s (already rosy) expectations. The chipmaker’s strong performance signals a continued demand for AI computing capabilities, reinforcing investor confidence.

Elon Musk looking shocked.
Image: CNBC

The Financial Impact Of Nvidia’s Rally

This may sound like stating the obvious, but it’s what underpins this whole story: Nvidia’s recent market movements highlight the company’s ability to generate massive value. Following the announcement of Musk’s AI plans and the positive earnings report, Nvidia’s market capitalisation increased by around $470 billion USD, representing one of the largest single-day gains in the company’s history.

Analysts like CJ Muse from Cantor Fitzgerald have expressed unabashed confidence in the growing and sustained demand for AI chips. Muse noted that Nvidia’s earnings report “completely defused any notion of an air pocket” — a potential decline — in demand for its products in 2024 and beyond. As a result, Nvidia’s stock hit this record high and, in doing so, cemented its position as a leader in the AI and semiconductor industries.

The remarkable growth of Nvidia’s stock is a testament to the company’s strategic positioning in the rapidly evolving AI sector. With continued investments and innovations in AI technology, Nvidia is poised to maintain its upward trajectory long into the future.

Never Heard Of Nvidia?

To the surprise of our writers here at DMARGE — who have been keeping a close eye on Nvidia during the AI explosion in recent years — it seems that this is the first time many people have even heard of Nvidia.

A screenshot of an instagram comment where a user claims to never have heard of Nvidia
Image: Instagram
A screenshot of an instagram comment where a user claims to never have heard of Nvidia
Image: Instagram

If you’re amongst this group of unawares, no offence but… it’s time to get up to speed; Nvidia — along with all the other major players in the chip and semiconductor industries — is set to become the most powerful corporation on earth as AI becomes ever more integrated into our daily lives.