Nvidia Becomes World’s Most Valuable Company, Surpassing Microsoft After 4% Stock Surge

Nvidia Surpasses Microsoft to Become World’s Most Valuable Company.

Nvidia has officially become the world’s most valuable publicly traded company after its share price surged over 4% on Wednesday. The chipmaker’s market capitalization soared to approximately $3.763 trillion, pushing it ahead of Microsoft, now in second place at $3.658 trillion.

Nvidia shares rose 4.33% during the trading session, closing at a record high of $154.10. The rally was fueled by a bullish report from Loop Capital, which raised its price target for Nvidia from $175 to $250 while maintaining a “buy” rating.

Loop Capital analyst Ananda Baruah noted that Nvidia is “at the front-end of another material leg of stronger than anticipated demand,” driven by the accelerating adoption of generative artificial intelligence. He called this momentum a “Golden Wave” of AI growth.

Despite the recent surge, Nvidia’s stock is currently trading at around 30 times its projected earnings over the next 12 months—below its five-year average of 40 times, according to LSEG data. Analysts say this reflects strong earnings growth that continues to justify the high valuation.

Nvidia, Microsoft, and Apple have been trading places in the race to become the world’s most valuable company throughout 2024. Microsoft had reclaimed the top spot in early June, but Nvidia’s recent performance has once again pushed it to the lead. Apple now sits in third place with a market value of $3.010 trillion, following a 0.63% gain.

World’s Top 10 Most Valuable Companies by Market Capitalization:
Nvidia – $3.763 trillion (▲ 4.33%)

Microsoft – $3.658 trillion (▲ 0.44%)

Apple – $3.010 trillion (▲ 0.63%)

Amazon – $2.250 trillion (▼ 0.37%)

Alphabet (Google) – $2.075 trillion (▲ 2.24%)

Meta Platforms – $1.781 trillion (▼ 0.49%)

Saudi Aramco – $1.569 trillion (▼ 0.82%)

Broadcom – $1.244 trillion (▲ 0.33%)

TSMC – $1.155 trillion (▲ 1.20%)

Tesla – $1.055 trillion (▼ 3.79%)