NVIDIA just became the world's most valuable company
What's the story
NVIDIA has become the world's most valuable company, overtaking tech giants Microsoft and Apple. The chipmaker's stock surged by 4.33% to close at a record high of $154.31 on Wednesday, taking its market capitalization to approximately $3.77 trillion. The rally was fueled by investor optimism around artificial intelligence (AI) and CEO Jensen Huang's presentation of the company's latest technologies at its annual shareholder meeting.
Market shift
NVIDIA's valuation now stands at $3.77 trillion
NVIDIA's impressive stock performance has pushed its market capitalization ahead of other tech giants. The company's valuation now stands at about $3.77 trillion, overtaking Microsoft's which closed at a valuation of $3.66 trillion after a 0.44% rise in its share price on Wednesday. Apple also saw a slight increase in its share price by 0.63%, giving the iPhone maker a market capitalization of $3.01 trillion.
Stock trajectory
NVIDIA stock has gained 17% so far in 2025
NVIDIA's stock has been on a remarkable upward trajectory, gaining 17% so far in 2025. This comes after a staggering 170% rally in 2024 and an almost 240% surge in 2023. Despite these sharp gains, the company's shares are trading at about 30 times analysts' projected earnings for the next year—below its five-year average of around 40, according to LSEG data.
Target increase
NVIDIA's price target raised to $250 from $175
Loop Capital has raised its share price target for NVIDIA to $250 from $175, while maintaining a "buy" rating. The firm cited the company's strategic position to benefit from a "Golden Wave" of AI adoption as the reason for this increase. This move further reflects the market's confidence in NVIDIA's potential growth and profitability amid the ongoing AI boom.