Nvidia overtook Apple and Microsoft to become the most valuable company

On Tuesday, Nvidia overtook Apple and Microsoft to take the top spot as the most valuable corporation, continuing to soar on the AI wave.

With a gain of more than 4%, NVIDIA Corporation's market capitalization reached $3.34 trillion, surpassing both Apple's and Microsoft's $3.29T, making it the most valuable business in terms of market capitalization.

Nvidia's increase coincides with the Technology Select Sector SPDR Fund rebalance, or shakeup, which is scheduled for Friday's close of trade and will see the chipmaker take a larger share of the index.

It is anticipated that Apple's percentage in the tech ETF would decrease to around 4.5%, while Nvidia's weighting will more than quadruple to almost 21%, matching Microsoft's. As a result, other funds that track the index will boost their exposure, and State Street Global Advisors, which manages the Technology Select Sector SPDR Fund, will purchase $10 billion of Nvidia shares.

The optimistic prediction from Rosenblatt Securities, which increased its price target for Nvidia stock to $200 from its previous estimate of $140, implying roughly 50% upside from its current price, also contributed to the chipmaker's surge.

The price target increase is in line with an optimistic projection for Nvidia's profitability, which Rosenblatt predicts will surpass $5 per share in calendar 2026. This indicates that the chipmaker will continue to gain market share from both current and prospective AI products.

(Sources: investing.com, reuters.com)