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Key Takeaways
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Nvidia’s market capitalization overtook Microsoft’s on Monday, making it the second-largest company in the world behind Apple.
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The semiconductor company and its partners are seeing robust demand for products to support artificial intelligence (AI).
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Analysts suggested Nvidia shares could still climb higher, given the strength of AI spending and seasonal tailwinds.
Nvidia’s (NVDA)market capitalization overtook Microsoft’s (MSFT) on Monday, making it the second-largest company in the world behind Apple (AAPL).
Nvidia shares climbed just over 2% Monday, lifting the chipmaker’s market cap to $3.13 trillion, ahead of Microsoft’s $3.04 trillion. Super Micro Computer (SMCI), a partner of Nvidia, reported strong shipments of its GPUs driven by artificial intelligence (AI) demand, helping send shares of both companies higher.
Nvidia and Microsoft have been jockeying with Apple for the top spot by market cap in recent months. In June, Nvidia briefly took the crown when it surpassed Microsoft, but Microsoft later reclaimed the title, and Apple has since pulled ahead.
Strong AI Spending Could Still Send Nvidia Stock Higher, Analysts Say
Nvidia’s stock price has more than doubled in value since the start of the year, as demand for its AI chips surged. Analysts suggested Nvidia shares could still climb higher, given the strength of AI spending trends and seasonal tailwinds.
Semiconductor companies typically perform better in the fourth quarter than they do in the third quarter, with Nvidia “still set to lead,” Melius Research analysts said Monday, adding “the setup here is still pretty darn good.”
Melius holds a price target of $165 for Nvidia, a 29% premium on Monday’s closing price of $127.72. That compares to an average price target of $152.52, according to Visible Alpha.
Read the original article on Investopedia.
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