Nvidia’s shares soared to a record high on Monday, putting the AI chipmaker close to surpassing Apple as the world’s most valuable company. Nvidia’s stock jumped 2.4%, closing at $138.07, bringing its market capitalization to $3.39 trillion, just behind Apple’s $3.52 trillion. Nvidia’s rise comes amid growing demand for its AI processors, as it remains the dominant player in the rapidly expanding AI market.
Nvidia briefly became the most valuable company in June before being overtaken by Microsoft. The three tech giants have been competing closely in market capitalization for months. Nvidia’s latest gains come as major tech firms like Microsoft, Alphabet, and Amazon continue to invest heavily in AI, fueling investor confidence in Nvidia’s future growth. Analysts from TD Cowen have reiterated their $165 price target for Nvidia, calling it their “Top Pick.”
Nvidia confirmed in August that production of its next-generation Blackwell chips was delayed until the fourth quarter, but reassured investors that demand for its current AI chips remains robust. The company has been a major force behind the AI-driven stock market rally that has lifted the S&P 500 to record highs.
While Nvidia’s rise has helped boost the S&P 500, concerns are growing that investor optimism could falter if spending on AI technologies slows down. Taiwan Semiconductor Manufacturing Co, which produces Nvidia’s processors, is expected to report a 40% surge in quarterly profit, further highlighting the ongoing demand for AI hardware.
As Nvidia, Apple, and Microsoft together account for about 20% of the S&P 500’s weight, their performance plays a critical role in the broader market’s gains and losses. Investors are now keenly watching the upcoming earnings season to gauge the tech giants’ growth and the sustainability of the AI boom.