Nvidia (NVDA) continues to skyrocket, surging last week above the 1,000 level for the first time last week. Its market cap raced past $2.5 trillion, less than a year after reaching the $1 trillion mark. Shares are still rising Tuesday.
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With the artificial intelligence leader continuing to deliver massive earnings and sales growth, Nvidia stock seems headed toward $3 trillion, passing or challenging Apple (AAPL) and Microsoft (MSFT) as the world’s most valuable company.
Nvidia stock surged 15.1% last week to a record 1,064.19, blasting past 1,000. The chip giant increased its market cap by $338 billion to $2.661 trillion as of May 24. That’s just behind Apple ($2.913 trillion) and not far from Microsoft ($3.196 trillion).
Nvidia stock only reached $2 trillion three months earlier, on Feb 23.
At the end of last year, Nvidia had a $1.22 trillion market cap, lagging Google parent Alphabet (GOOGL) and Amazon.com (AMZN) in addition to Apple and Microsoft. Out of the Magnificent Seven stocks, Nvidia only had a higher valuation than Meta Platforms (META) and Tesla (TSLA).
Nvidia Earnings
On May 22, Nvidia reported Q1 2025 earnings per share of $6.12, up 461% vs. a year earlier, with revenue soaring 265% to $26.04 billion. The company also guided higher.
Even with year-over-year comparisons getting tough, analysts expect Nvidia earnings to soar 107% in fiscal 2025 to $26.85 a share, followed by a 31% gain in fiscal 2026 to $35.12.
Keep in mind that Nvidia earned just $3.34 a share in fiscal 2023.
Microsoft, Apple and the other Magnificent Seven stocks have various catalysts, but a lot of that reflects AI growth, or at least AI growth hopes that are good news for Nvidia. Megacap techs are spending massively on AI, with a lot of that going directly on Nvidia chips.
Why Nvidia Stock’s Surge Could Be Just The Beginning Of A Monster Run
Nvidia Stock
Nvidia stock is up 115% so far in 2024 as of May 24 after leading the S&P 500 with a 238.9% surge in 2023.
This year, it’s easily best-performing the Magnificent Seven member, with Meta stock a distant second at up 35%. Tesla stock, also a clear outlier in terms of earnings and valuation, is leading the downside with a 27.9% decline in 2024.
Microsoft stock is right at all-time highs, up a more-modest 14.4% in 2024. Apple stock is down 1.3%, even with a strong bounce in May.
Nvidia Milestones
Nvidia closed above a $1 trillion market cap on June 13, 2023. On Feb. 23, 2024, NVDA stock topped $2 trillion.
On May 23, Nvidia gapped above the 1,000 level and the $2.5 trillion mark.
The Next Nvidia Milestones
At the current $2.662 trillion valuation, Nvidia just needs a 12.8% advance to reach $3 trillion. That would also pass up Apple’s current valuation and greatly narrow the gap with Microsoft.
Nvidia stock rose 4.5% early Tuesday, pushing the market cap above $2.75 trillion.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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