On Tuesday, Nvidia outpaced Apple and Microsoft, claiming the top market cap seed as it has persisted in steering the artificial intelligence (AI) race to new heights.
The chipmaker’s stock closed the session by rising 3.56% to $135.64 apiece and 0.56% to $136.40 in after-hours trading.
Moreover, Tuesday’s gain has significantly impacted Nvidia, pushing the firm’s market cap to $3.34 trillion, slightly ahead of Microsoft’s $3.31 trillion and Apple’s $3.29 trillion.
The company’s stock surge coincides with the upcoming rebalancing of the Technology Select Sector SPDR Fund at the close of trading on Friday, where the chipmaker will have an increased weighting in the index.
Meanwhile, Nvidia’s share in the tech exchange-traded fund is anticipated to increase significantly, reaching over 21.00%, similar to Microsoft’s portion. However, Apple is predicted to decrease by approximately -4.50%.
Hence, State Street Global Advisors, which manages the tech index, will purchase $10.00 billion worth of shares in the chip manufacturer, and other funds tracking the index will similarly boost their exposure.
Additionally, bullish remarks from Rosenblatt Securities stimulated Nvidia’s recent gain. The firm increased its price target for the firm stock to a street high of $200.00, compared to its previous $140.00 estimate, proposing a close 50.00% climb from its current price.
Graphics Processors of Nvidia Dominate AI Arms Race
Nvidia’s powerful graphics processors have favored tech giants such as OpenAI, Google, Amazon, and Microsoft to enhance their AI systems and infrastructure.
Moreover, the chipmaker reported solid Q1 results last May, with a net income of $26.04 billion and $22.60 billion in data center revenue in the same quarter.
Meanwhile, the results prompted Nvidia CEO Jensen Huang to confirm that the firm will launch new AI chipsets annually as part of what Huang marked as a modern industrial insurgence that will affect all areas of the global economy.
The chip manufacturer used to release new versions of its high-end microprocessors biennially. Ampere came out in 2020, Hopper in 2022, and the Blackwell Architecture in 2024.
