Nvidia’s NVDA As the company led by Jensen Huang has emerged as a leader in artificial intelligence technology, its performance has continued unabated for nearly two years despite market fluctuations.
Wild Rally: Nvidia has been the second-best performing S&P 500 stock this year, behind power company Vistra. VST. After ending 2023 with a solid 240% gain, the stock is up 168% so far this year.
Nvidia, which started this week as the third-largest company by market capitalization, overtook Microsoft Corp. MSFT It further solidified its second place position on Monday, and further solidified its position on Tuesday. Shares of the AI heavyweight closed Tuesday’s session up 4.05% at $132.89, according to data from Benzinga Pro.
This prolonged bull market marks a turnaround from 2022, when stock prices fell more than 50% as the AI trend began to push all sorts of companies to utilize AI technology. Nvidia’s first-mover advantage, cutting-edge technology, full-stack AI solutions, and strong management team have been hallmarks of the company’s success.
Skeptics often risk the high spending needed to maintain a lead in the AI race, potentially causing a potential AI bubble to burst with headwinds. The company continues to execute on its plans, outperforming expectations and defying doomsday predictions.
See also: How to buy Nvidia (NVDA) stock
What it takes to lead: Nvidia closed Tuesday with a market capitalization of $3.26 trillion, compared to Apple’s $3.429 trillion. The difference is $169 billion.
Nvidia has 24.85 billion shares outstanding on a diluted basis.
To catch up with Apple, Nvidia would need to add $6.8 to the market price per share, assuming Apple’s stock price remains the same or declines. This isn’t a difficult question considering Nvidia added $5.17 on Tuesday.
Does this stock have the power to leapfrog Apple? In pre-market trading on Wednesday, Nvidia was up about $1, while Apple was down $1.28, or 0.57%.
Speeches from a number of Fed officials and minutes from the September interest rate meeting, where the central bank announced the first rate cut of the current monetary policy meeting cycle, could shape the tone at Wednesday’s meeting. Absent a fundamental stock-specific catalyst, we can’t rule out Nvidia closing Wednesday as the most valuable company.
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