Large chipmaker Nvidia (NVDA) has become the most valuable company to date after temporarily breaking Apple’s records early on Thursday morning. Before the market closed on Tuesday, the company’s market capitalization was $3.92 trillion, with Apple’s 2024 record at $3.915 trillion. When the store closed at 1pm, the chipmaker returned to $3.89 trillion.
Prior to the July 4 holiday, shares in AI chip makers rose more than 2% in Thursday’s shortened trading session. Prior to the recent surge in Nvidia, Microsoft (MSFT) was the most valuable company in the world. Microsoft is now the second most valuable company on Wall Street, with a market capitalization of $3.7 trillion. The stock rose 1.7% to $499.56 on Thursday.
Nvidia (NVDA) stock hit a new all-time high last week amid a surge in AI stocks. Investors are keen to continue climbing. Analysts are currently trading an additional $159. Additionally, Wedbush analyst Dan Ives said Thursday that Nvidia expects it to reach $4 trillion market capitalization this summer, reaching $5 trillion in the next 18 months. “We believe tech stocks will be a very strong second half of the year,” he said in a note to client on Thursday. “Our bullish view is that investors are underestimating the tide waves on the horizon from $2 trillion in spending over the next three years coming from corporate and government spending around AI technology and use cases.”
Will Nvidia continue to control and increase inventory and market capitalization even more rapidly?
Nvidia has played a leading role in driving some of the most important changes in various key market sectors as hyperscalers remain and continues to overrely rely on companies in the AI chip sector when prices are still high. The value of NVIDIA’s market capitalization reflects this positioning strategy, worth $3.7 billion as of July 2nd, and such figures will help drive various major growth plans across the sector. The sustained demand from hyperschools, which require NVIDIA’s advanced technology for AI and machine learning operations, has driven this market capitalization climb, and these partnerships have optimized multiple key operational frameworks.
“When the first company went over $1 trillion, that was amazing. And now you’re speaking 4 trillion words, and it’s incredible. It tells you there’s a huge rush to spend AI and chase it now.” Furthermore, last week, loop capital analyst Ananda Barua raised the price target for Nvidia stock, the best Wall Street analyst tracked by Yahoo Finance, to $250. The new price target suggests that Nvidia’s market capitalization could skyrocket from the current $3.6 trillion level to $6 trillion. “It may seem fantastic that NVDA fundamentals continue to amplify from current levels, but it reminds people that NVDA is essentially a monopoly of critical technology and has the power of pricing (and margins),” Barua wrote in a note to investors.
