Nvidia’s market capitalization surpassed Microsoft’s, reaching $3.13 trillion, driven by strong AI demand for its GPUs.
Nvidia(NVDA) has overtaken Microsoft (MSFT) in market capitalization, making it the second-largest company globally, just behind Apple (AAPL).
On Monday, Nvidia shares rose by over 2%, bringing its market cap to $3.13 trillion, surpassing Microsoft’s $3.04 trillion.
Nvidia’s partner, Super Micro Computer (SMCI), reported a strong shipment of GPUs, driven by surging artificial intelligence (AI)demand. This contributed to the boost in both companies’ share prices. The rise in demand for AI chips has seen Nvidia’s stock more than double in value since the start of 2024.
Nvidia and Microsoft have been competing with Apple for the top spot by market cap over recent months. Nvidia briefly surpassed Microsoft in June, before Microsoft reclaimed the title, with Apple maintaining its lead.
Analysts suggest Nvidia shares could still rise due to increasing AI spending and favourable seasonal trends. Historically, semiconductor companies perform better in the fourth quarter than the third, and analysts at Melius Research predict Nvidia will remain the leader.
Melius maintains a price target of $165 for Nvidia, which is a 29% premium compared to Monday’s closing price of $127.72. This also exceeds the average price target of $152.52, according to Visible Alpha.
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