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19/06/24
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Nvidia Takes Spot as World’s Most Valuable Company
On Tuesday, Nvidia bypassed Microsoft and Apple to take the spot of most valuable company in the world as the chipmaker continued to ride the AI-wave to new peaks.
NVIDIA rose over 3% and pushed its market cap to $3.34T, transcending Microsoft’s $3.31T and Apple’s $3.29T, making the chipmaker the world’s most valuable company by market capitalization.
The Nvidia rally came as the Technology Select Sector SPDR Fund will be rebalanced on Friday at the end of trading that will result in the chipmaker making up a larger portion of the index.
Nvidia’s weight in the tech ETF will likely more than double to around 21%, the same as Microsoft’s weighting, while Apple’s will likely be cut to around 4.5%. This will lead to State Street Global Advisors buying $10B of Nvidia shares, while other funds tracking the index will also increase their exposure proportionally.
The chipmaker’s gain was also spurred by Rosenblatt Securities’ bullish call that raised its price target on the Nvidia stock from $140 to $200, indicating close to 50% upside from the current price.
The price target hike reflects a bullish outlook for Nvidia’s earnings, which Rosenblatt forecasts will exceed $5 per share in 2026, pointing to further market share gains for the chipmaker from AI chips.
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