Nvidia Becomes World’s Most Valuable Company Again Amid AI Boom
Nvidia Corporation (NASDAQ: NVDA) has reclaimed its title as the world’s most valuable company, with its stock hitting a record high of $154.10 on Wednesday. This surge pushed the chipmaker’s market capitalisation to $3.76 trillion, overtaking Microsoft ($3.65 trillion) and Apple ($3.0 trillion) in the ongoing battle for tech supremacy.
AI “Golden Wave” Predicted to Fuel Further Growth
Driving Nvidia’s momentum is a bullish analyst forecast from Loop Capital, which increased its price target from $175 to $250 and maintained a “buy” rating. Analyst Ananda Baruah described Nvidia as being at the “front-end of another material leg of stronger-than-anticipated demand” as generative AI adoption accelerates globally.
“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is leading the charge,” said Baruah in a client note.
Investors Return to the AI Trade
The rally reflects a broader trend of investors re-embracing the AI trade, which has previously driven massive gains in semiconductor and tech stocks. Nvidia, a global leader in AI processors and GPUs, is central to this renewed optimism about the future of artificial intelligence technology.
Despite its soaring stock price, Nvidia’s forward P/E ratio remains at 30, according to LSEG data, below its five-year average of 40, suggesting earnings growth is outpacing valuation.
Tech Giants Jockey for Market Cap Leadership
This latest stock performance puts Nvidia ahead of Microsoft and Apple in the race for the world’s most valuable company. The three tech titans have been trading positions for months, with Nvidia’s 60% rebound since April marking a significant comeback.
The rebound coincides with broader market optimism, following fears in April after President Donald Trump’s global tariff announcements. With expectations rising that the U.S. may soften these trade policies, investor sentiment has strengthened.
Nvidia Positioned for AI-Driven Dominance
With analyst upgrades, surging AI demand, and a strong market position, Nvidia is poised to benefit from long-term artificial intelligence trends. As Wall Street bets on the next phase of tech innovation, Nvidia’s record-breaking performance may just be the beginning of its “Golden Wave.”
