Nvidia has become the most valuable company on earth after it surpassed Apple ($3.32 trillion) and Microsoft ($3.28 trillion) after an explosive share price growth on Tuesday, with its market cap reaching $3.34 trillion.
This surge, driven by Nvidia’s strong performance in the AI sector, saw its stock rise over 3 percent, international media reported late on Tuesday.
The Technology Select Sector SPDR Fund’s upcoming rebalancing will significantly increase Nvidia’s representation, more than doubling to around 21 percent and similar to Microsoft’s share. In contrast, Apple’s share in the index will drop to about 4.5 percent. It is expected that US-based State Street Global Advisors will invest $10 billion in Nvidia shares, and other index-tracking funds will also boost their holdings.
Nvidia’s stock was further boosted by Rosenblatt Securities, which raised its price target to $200, a 50 percent increase from its current value. This optimistic outlook is based on Rosenblatt’s forecast of Nvidia’s earnings exceeding $5 per share by 2026, driven by gains in the AI chip industry.
The company’s advanced chips, including Hopper, Blackwell, and Rubin, are expected to enhance its market position, particularly in AI infrastructure.
Nvidia is considered one of the ‘Magnificent Seven’ technology stocks in the United States. Since early 2023, its value has jumped nearly tenfold and also tripled in value 2024 to date.
Nvidia has taken a commanding lead in the AI sector. The company first reached a $1 trillion valuation in May 2023 and then soared past $2 trillion in February 2024, overtaking both Amazon and Alphabet in terms of value. Now, it is the most valuable company on the planet.
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