Nvidia topples Microsoft as world’s most valuable company

Chipmaker Nvidia is now the world’s most valuable company, unseating Microsoft as investors bet its AI dominance will remain unmatched for now.  

The chipmaker’s market value crossed $3.34 trillion on Tuesday, surpassing Microsoft’s $3.32 trillion. Apple, which was unseated by both, has a market value of $3.27 trillion. Despite the gains, the trio are neck-and-neck.

“We continue to believe this is a stock or company that can continue to grow the earnings trajectory over the next five years by north of a 30% annualized pace,” said CFRA research analyst Angelo Zino during an appearance on “Varney & Co.” 

Zino raised his price target to $139 per share. The stock, already this year, has gained more than 174%.

NVIDIA’S CEO JENSEN HUANG A BIG HIT IN TAIWAN

CEO Jensen Huang recently returned from a trip to Taiwan where he was treated as tech rockstar touting Nvidia’s relationship with the country, his birthplace, as AI chip use grows. 

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during a news conference in Taipei, Taiwan, on Tuesday, June 4, 2024. Nvidia is still working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips

Nvidia is also fresh off its 10-for-1 stock split, which began trading on June 10. Mutual fund managers and various exchange-traded funds are also adjusting for the split which could be contributing to the trading action. 

The shares were the most active in both the S&P 500 and Nasdaq Composite – both indices are hovering at fresh-record highs.