Shares of Nvidia (NVDA.O) hit a record high on Monday, placing the prominent AI chipmaker on the verge of surpassing Apple (AAPL.O) as the world’s most valuable company. Nvidia’s stock climbed 2.4%, closing at $138.07, as investor optimism surged over strong demand for the company’s AI processors, both current and next-generation.
In June, Nvidia momentarily claimed the title of the world’s most valuable company before Microsoft overtook it. Since then, the three tech giants have been vying for dominance, with their market capitalizations fluctuating closely. Nvidia’s market value now stands at $3.39 trillion, just behind Apple’s $3.52 trillion, and above Microsoft’s $3.12 trillion.
Nvidia has emerged as the clear Wall Street favorite in the intense competition between Alphabet (GOOGL.O), Microsoft, Amazon (AMZN.O), and other major tech players to capitalize on AI advancements. Analysts at TD Cowen observed that the AI leaders are in a “Prisoner’s Dilemma” situation, where each is highly incentivized to continue investing heavily due to the potential risks of falling behind.
TD Cowen reiterated its $165 price target for Nvidia, which it dubbed its “Top Pick,” citing persistent demand for the company’s AI chips. While Nvidia confirmed in August that production of its upcoming Blackwell chips would be delayed until the fourth quarter, the company reported that customers continue to eagerly purchase its existing models.
In a broader market rally, Apple and Microsoft also posted gains on Monday, rising nearly 2% and 0.7% respectively, which helped lift the S&P 500 (.SPX) by 0.8% to a record close. Together, Nvidia, Apple, and Microsoft account for roughly one-fifth of the S&P 500’s weight, underscoring their significant influence on the index.
Adding to the AI sector’s momentum, Taiwan Semiconductor Manufacturing Co (2330.TW), Nvidia’s chip supplier, is expected to report a 40% increase in quarterly profit later this week, driven by escalating demand. Analysts predict that Nvidia’s revenue will more than double to nearly $126 billion this year, spurred by spending on AI data centers, according to LSEG data.
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