Nvidia overtook Google-parent Alphabet's stock market capitalisation to become the third biggest US company on Wednesday, days before the poster child of AI boom is due to report fourth-quarter results.

Strong demand for the Silicon Valley company's chips used in artificial intelligence computing has powered the stock 231% in the past 12 months to record highs, taking its market value to US$1.812 trillion.

In comparison, Alphabet's market capitalisation is US$1.814 trillion.

With a 50% surge lifting Nvidia to the top spot among the S&P 500 components stock performance this year, the company has joined the league of Magnificent Seven stocks, surpassing retail giant Amazon.com earlier this month.

Wall Street expects Nvidia to post US$11.38 billion in fourth-quarter profit, up more than a staggering 400% from a year ago. Its revenue is expected to surge more than three-fold to US$20.37 billion.

Nvidia now trades 33.19 times its forward earnings estimates, above the industry median multiple of 27.35, per LSEG data.

A higher multiple indicates the stock is more likely to have priced in its earnings potential, leaving little room for further growth.

  - Reuters