Nvidia Surpasses Apple and Microsoft to Become the World's Most Valuable Company
Nvidia has become the world’s most valuable company, surpassing Apple ($3.32 trillion) and Microsoft ($3.28 trillion) with a market cap of $3.34 trillion after a significant rise in its share price on Tuesday.
This increase, driven by Nvidia’s strong performance in the AI sector, saw its stock go up by over 3 percent, according to international media reports.
The upcoming rebalancing of the Technology Select Sector SPDR Fund will greatly boost Nvidia’s representation to about 21 percent, similar to Microsoft’s share, while Apple’s share will drop to around 4.5 percent. US-based State Street Global Advisors is expected to invest $10 billion in Nvidia shares, with other index-tracking funds also increasing their holdings.
Rosenblatt Securities further boosted Nvidia’s stock by raising its price target to $200, a 50 percent increase from its current value. Rosenblatt’s optimistic outlook is based on a forecast that Nvidia’s earnings will exceed $5 per share by 2026, driven by its advances in the AI chip industry.
Nvidia’s advanced chips, like Hopper, Blackwell, and Rubin, are expected to strengthen its position in the AI infrastructure market.
Nvidia is one of the ‘Magnificent Seven’ technology stocks in the US. Its value has nearly increased tenfold since early 2023 and tripled in 2024 so far.
Nvidia first reached a $1 trillion valuation in May 2023, then soared past $2 trillion in February 2024, overtaking Amazon and Alphabet. Now, it stands as the most valuable company on Earth.
