Nvidia, the tech giant, has taken the top spot as the most valuable company in the world, surpassing both Microsoft and Apple. This achievement is expected to last for at least one day, with operations scheduled to close on Wednesday in honor of the June 16 holiday. Wall Street analyst Hans Mosesmann has raised his price target on Nvidia shares from $140 to $200, setting a new high on Wall Street. This new target is based on a price-earnings multiple of 40 times its forecasted earnings in 2026. If Nvidia were to reach this target, its market valuation could potentially reach $4.7 trillion based on a share count of around 23.55 billion.
In comparison, the highest price target for Apple stock is $275, which would give a market valuation of $4.21 trillion at its current share count. For Microsoft, the highest price target is $600, indicating a potential market valuation of $4.39 trillion. Wall Street’s average forecast for Nvidia’s 2026 earnings is $4.10, with an average price target for the stock of $126.24 according to FactSet.
Nvidia’s stock closed up 3.51% on Tuesday at $135.58, putting its market value at $3.34 trillion. This exceeded Microsoft’s value of $3.33 trillion and Apple’s value of $3.28 trillion. Analysts suggest that Nvidia could extend its lead further by focusing on the software aspect that complements its hardware offerings. This shift towards software is expected to increase significantly over the next decade, leading to a rise in overall sales mix and valuation.
In line with its focus on software, Nvidia has agreed to acquire Shoreline.io, a startup for software developers, in a deal valued at about $100 million. While Nvidia has not commented on the specifics of the report, this move highlights the company’s strategic efforts to expand its software capabilities. As the tech sector continues to evolve, Nvidia’s position as the most valuable company in the world reflects its ongoing innovation and growth in the industry.
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https://www.barrons.com/amp/articles/nvidia-stock-new-price-high-a37b259a
