On Monday, Nvidia’s (NVDA) market capitalisation surpassed Microsoft’s (MSFT), placing it as the world’s second-largest company, behind Apple (AAPL). With a little over a 2% increase in shares on Monday, Nvidia’s market capitalization surpassed Microsoft’s $3.04 trillion to reach $3.13 trillion.
The demand for artificial intelligence (AI) drove significant shipments of GPUs from Super Micro Computer (SMCI), a partner of Nvidia, which helped drive up the shares of both firms. In recent months, Nvidia, Microsoft, and Apple have been vying for the top slot based on market capitalisation. When Nvidia overtook Microsoft in June, the latter company regained the lead, but Apple has now overtaken Nvidia.
Since the beginning of the year, the value of Nvidia’s stock has more than doubled due to a spike in demand for its AI hardware. Given the robustness of spending patterns in artificial intelligence and the seasonal advantages, analysts predicted that Nvidia’s shares may still rise, BrandSpur digital news platform reports.
The fourth quarter is usually a better month for semiconductor companies than the third. Nvidia is “still set to lead,” according to analysts at Melius Research, and “the setup here is still pretty darn good,” they added on Monday. In recent months, Nvidia, Microsoft, and Apple have been vying for the top slot based on market capitalisation. When Nvidia overtook Microsoft in June, the latter company regained the lead, but Apple has now overtaken Nvidia.
Since the beginning of the year, the value of Nvidia’s stock has more than doubled due to a spike in demand for its AI hardware. Given the robustness of spending patterns in artificial intelligence and the seasonal advantages, analysts predicted that Nvidia’s shares may still rise. The fourth quarter is usually a better month for semiconductor companies than the third. Nvidia is “still set to lead,” according to analysts at Melius Research, and “the setup here is still pretty darn good,” they added on Monday.
Melius has set a price target for Nvidia of $165, which is 29% higher than the closing price of $127.72 on Monday. Visible Alpha compares that to an average price estimate of $152.52.
