Apple, once the world’s most valuable company, was the first public company to hit valuations of $1 trillion (August 2, 2018), $2 trillion (August 19, 2020), and $3 trillion (January 3, 2022), but it looks like the current world’s most valuable company, Nvidia, is poised to be the first to $4 trillion.
Top Three Market Caps:
- Nvidia – $3.853 trillion
- Microsoft – $3.697 trillion
- Apple – $3.064 trillion
Martin Baccardax for Barron’s:
Nvidia crossed the $1 trillion mark in June 2023, shortly after it effectively fired the starting gun on a race to benefit from demand linked to artificial intelligence with a revenue forecast for its powerful chips that obliterated Wall Street forecasts. It took another 262 days to reach $2 trillion, but only 96 days to get past $3 trillion, a level it reached on June 5, 2024.
Now, $4 trillion is in sight. The AI chipmaker, in fact, could reach that threshold in just a few weeks, given the stock’s daily average gain of around 0.8% over the past month, based on data from FactSet. Gains that size would lift Nvidia’s current value past the $4 trillion mark in just five trading days.
With a current market value of around $3.8 trillion, Nvidia’s weighting in the S&P 500 is about 6.9%, compared with about 6.7% for Microsoft and 5.4% for Apple. While some investors are concerned about Nvidia’s influence over the broader market, even that 6.9% underplays Nvidia’s valuation.
If Nvidia were to top the $4 trillion mark, it would represent around 13% of the benchmark’s near $52 trillion in total market capitalization.
MacDailyNews Take: The gulf between those who could see the GenAI revolution coming and those who couldn’t grows wider with each passing day.
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[Thanks to MacDailyNews Readers “Fred Mertz” and “James W.” for the heads up.]
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