Nvidia’s stock hit its highest point ever on Monday, putting the AI chip giant close to overtaking Apple as the world’s most valuable company. Investors are betting on strong demand for Nvidia’s current and upcoming AI processors. The company’s stock rose by 2.4%, closing at $138.07.
Back in June, Nvidia briefly became the top company in the world before being surpassed by Microsoft. For the past few months, these three tech giants—Apple, Microsoft, and Nvidia—have been competing closely in terms of market value.
After this latest surge, Nvidia’s market value is now $3.39 trillion, just behind Apple’s $3.52 trillion, and ahead of Microsoft’s $3.12 trillion. Nvidia has been a big winner in the race between tech giants like Alphabet, Microsoft, and Amazon to dominate AI technology.
Analysts believe that major AI companies are in a tough spot, where each needs to keep investing heavily in AI to avoid falling behind. TD Cowen analysts have maintained their price target for Nvidia at $165, calling it their “Top Pick,” due to high demand for the company’s AI chips.
In August, Nvidia delayed the production of its new Blackwell chips but assured investors that demand for its current chips remains strong. With quarterly reports approaching, Apple and Microsoft also saw gains, helping boost the S&P 500 index to a new record close.
Nvidia’s success has been closely tied to Taiwan Semiconductor Manufacturing Co, which makes Nvidia’s processors. TSMC is expected to report a 40% jump in profits due to the soaring demand for AI chips. Analysts predict Nvidia’s yearly revenue could more than double to $126 billion.
However, some investors are cautious. While Nvidia’s rise has pushed the S&P 500 to new highs, there’s concern that the enthusiasm around AI could fade if spending on the technology slows down.
