This week, Nvidia, Microsoft, and Apple are competing for the title of most valuable company in the world as investors focus on the future of AI. The largest technology exchange-traded fund, State Street’s Technology Select Sector SPDR, with assets close to $80 billion, is gearing up for a significant rebalancing. Nvidia recently surpassed Microsoft as the most valuable company for the first time, with Apple and Microsoft in close competition.
As a result of the upcoming rebalancing, Nvidia is expected to overtake Apple in terms of stock value. Nvidia’s shares have seen a significant increase of nearly 160% this year, driven by its leadership in AI chips. The company reported a record $26 billion in revenue last quarter, a 262% increase year-over-year. In addition, Nvidia executed a 10-for-1 stock split and raised its quarterly dividend by 150% to 10 cents per share.
R “Ray” Wang, the founder of Constellation Research, predicts that Nvidia’s stock will reach $200 this year. He highlighted Nvidia’s dominant market share, the innovative product roadmap, and the company’s growth potential. CEO Jensen Huang, known for his signature black leather jacket, has garnered a cult following worldwide. On a recent trip to Taiwan, his native country, Huang received a rock star reception, even throwing out ceremonial first pitches at baseball games.
The unprecedented competition between Nvidia, Microsoft, and Apple highlights the rapid growth and significance of the AI industry. Nvidia’s continued success and innovation have positioned the company as a leader in the market, with strong financial performance and investor confidence. Following the upcoming rebalancing, Nvidia is expected to surpass Apple in stock value, further solidifying its position in the technology sector. CEO Jensen Huang’s visionary leadership and unique style have contributed to Nvidia’s growing global appeal, making the company a standout player in the evolving tech landscape.
Investors are closely watching the movements of these tech giants as they navigate the competitive landscape and capitalize on the growing demand for AI technology. Nvidia’s strong performance and optimistic outlook have fueled speculation about the company’s future stock price, with experts like R “Ray” Wang predicting further growth in the coming year. As the race for AI dominance continues, Nvidia remains a key player to watch in the evolving technology sector.
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