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Nvidia leapfrogs Apple, Microsoft to take crown as most valuable company

June 18, 2024 4:49 PM EDT

Investing.com -- Nvidia leapfrogged Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to snatch the crown of most valuable company on Tuesday as the chipmaker continued to ride AI-wave to new heights.

NVIDIA Corporation (NASDAQ: NVDA) rose more than 3%, pushing its market cap to $3.34 trillion, surpassing Microsoft's $3.31T and Apple's $3.29T, making the chipmaker the most valuable company by market cap.

The latest surge in the chipmaker comes on the heels of bullish call from Rosenblatt Securities raising its price target on the Nvidia stock to a street high of $200, up from its prior estimate of $140, suggesting nearly 50% upside from its current price.

The price target hike reflect a bullish outlook for Nvidia earnings, which Rosenblatt estimates, will top $5 a share in calendar 2026, Rosenblatt forecasts, pointing to further market share gains for chipmaker from existing and upcoming AI chips.

Nvidia's chips including Hopper, Blackwell, and Rubin are expected to continue to allow the chipmaker to bolster its market share, with future gains in AI-related infrastructure expected in "adjacent networking Switch/NiC/DPU share," Rosenblatt adds, but the real future narrative is its software, which compliments "all the hardware goodneness"

Nvidia's software aspect, Rosenbaltt estimates, will "significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability."


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