Artificial intelligence chip and software leader Nvidia on Tuesday took the crown as the most valuable company by market capitalization, surpassing previous top dogs Apple and Microsoft. Nvidia stock rose after getting its highest price target yet from a Wall Street analyst.
Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on Nvidia stock and raised his price target to 200 from 140.
"We see Nvidia's Hopper, Blackwell and Rubin series (data center processors) driving 'value' market share in one of Silicon Valley's most successful silicon/platform product cycles," Mosesmann said in a client note.
While Nvidia's graphics processing units grab the headlines, the company's networking gear and other hardware along with its software stack play major roles in its success, he said.
"The real narrative lies in the software that complements all the hardware goodness," Mosesmann said. "We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability."
Nvidia Stock Is On Five IBD Lists
On the stock market today, Nvidia stock rose 3.5% to close at 135.58.
With the advance, Nvidia now has a market value of nearly $3.34 trillion. That compares with Microsoft's $3.32 trillion value and Apple's $3.29 trillion value.
Nvidia stock is one of the Magnificent Seven stocks along with Apple and Microsoft.
Meanwhile, Nvidia stock is on five IBD stock lists: Leaderboard, IBD 50, Big Cap 20, Sector Leaders and Tech Leaders.
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