Nvidia has reclaimed its position as the world’s most valuable company, driven by strong investor enthusiasm for artificial intelligence. On Wednesday, its stock rose over 4% to a record $154.10, pushing the company’s market capitalization to $3.76 trillion, just ahead of Microsoft’s $3.65 trillion. The surge came after Loop Capital raised its price target for Nvidia from $175 to $250, maintaining a “buy” rating and citing accelerating demand for generative AI technologies.
Loop Capital analyst Ananda Baruah stated that Nvidia is leading a new wave of AI growth, fueled by stronger-than-expected demand. As a major supplier of GPUs that power AI models, Nvidia has become a central player in the tech rally, especially as AI reshapes sectors from computing to automation.
Despite its rapid gains, Nvidia’s valuation remains relatively moderate compared to historical trends. The company is trading at around 30 times projected earnings, below its five-year average of 40 times. This reflects analysts’ increasing profit expectations as Nvidia continues to deliver solid financial results.
The competition for the top market spot has been intense, with Nvidia, Microsoft, and Apple trading places over the past year. Apple’s valuation reached approximately $3 trillion after a modest 0.4% gain.
Nvidia’s rise also reflects a broader recovery in tech stocks following a dip in April triggered by tariff concerns. The S&P 500’s technology index climbed 0.9% on Wednesday, hitting a new peak and bringing its 2025 gain to nearly 6%.
Meanwhile, Tesla is also making headlines with its AI efforts. Beyond its self-driving cars, the company is advancing its Optimus robot project, aimed at factory automation and future consumer use. Nvidia CEO Jensen Huang highlighted humanoid robotics as a potential “multitrillion-dollar industry,” noting Tesla as a notable innovator in the space.
Tesla’s stock has jumped nearly 30%, buoyed by early testing of its robotaxi service in Texas. However, some analysts remain cautious, suggesting recent gains may be driven more by excitement than long-term fundamentals. Optimus and robotaxis hold promise, but key questions remain around scalability and commercial viability.
Investors remain watchful as AI continues to reshape the tech landscape and influence market leadership.
