NVIDIA Hits Record High, Poised to Surpass Apple as Most Valuable Company
On Monday, NVIDIA shares hit an all-time high, positioning the company to potentially overtake Apple as the world’s most valuable company.
On Monday, NVIDIA shares hit an all-time high, positioning the company to potentially overtake Apple as the world’s most valuable company.
Investors remain optimistic about the current and next-generation demand for AI processors. NVIDIA's stock climbed 2.4% during the session, closing up 2.43% at $138.07. This June, NVIDIA briefly held the title of the world’s most valuable company before being surpassed by Microsoft. Currently, these three tech giants have been neck-and-neck in terms of market valuation.
As of now, NVIDIA’s market cap has risen to $3.39 trillion, just trailing Apple at $3.52 trillion, and ahead of Microsoft at $3.12 trillion.
While Google, Microsoft, Amazon, and other major tech companies compete for dominance in emerging AI technologies, NVIDIA has been a significant winner on Wall Street. In a report, TD Cowen analysts highlighted that companies in the AI space face a "Prisoner's Dilemma" investment environment—each company is compelled to continue spending, as the costs of not doing so could be catastrophic.
TD Cowen reiterated a target price of $165 for NVIDIA, rating it as a "Top Pick" and indicating that demand for its current generation of AI chips remains robust.
In August, NVIDIA confirmed that the production of its Blackwell chips would be delayed to Q4, though it downplayed the impact, noting that customers are eagerly purchasing its current chips. NVIDIA, Apple, and Microsoft collectively represent about one-fifth of the S&P 500 index, significantly influencing its daily fluctuations.
Additionally, TSMC is expected to release its Q3 earnings on Thursday, projected to soar by 40%. According to data from the London Stock Exchange (LSEG), analysts anticipate that spending on AI data centers will drive NVIDIA’s annual revenue to more than double, reaching nearly $126 billion.
While NVIDIA’s rally has propelled the S&P 500 to record highs, investors worry that any slowdown in tech spending could dampen AI enthusiasm.
