Nvidia retreats from $3 trillion territory as stock’s momentum stalls
Nvidia Corp. knocked off Apple Inc. to become the second-largest U.S. company by market capitalization on Wednesday, but the two are set to swap places again.
Not only will investors will have to wait to see Nvidia NVDA,
After a milestone Wednesday trading session in that Nvidia crossed the $3 trillion market-cap threshold, Nvidia shares opened higher. They’ve since turned around, however, down 2.6% in afternoon action to prices that would translate to a $2.93 trillion market cap at the close.
Shares of Microsoft, currently the most valuable U.S. company by market cap, are off fractionally, and the company is on track to finish at a $3.14 trillion valuation. Apple’s market cap is on pace to be about $2.99 trillion at the close.
See more: Nvidia is now worth more than $3 trillion — and worth more than Apple
“As we look ahead, we think [Nvidia] is on pace to become the most valuable company, given the plethora of ways it can monetize AI and our belief that it has the largest addressable market-expansion opportunity across the tech sector,” CFRA analyst Angelo Zino wrote in a note to clients.
While other chip companies are seeking to capitalize on artificial-intelligence spending as well, Nvidia’s market-cap dominance shows how far ahead it is, both in terms of reaping the financial rewards and in the eyes of Wall Street.
For context, Nvidia’s market cap as of Wednesday’s close was larger than those of the next three largest companies within the iShares Semiconductor ETF — Taiwan Semiconductor Manufacturing Co. Ltd. 2330,
Nvidia’s market value also exceeded the combined valuations of Broadcom, Advanced Micro Devices Inc. AMD,