Nvidia briefly overtook Microsoft to become the world’s most valuable company as its stock surged over 4%, hitting $154.10 per share. This drove its market capitalization to $3.76 trillion, narrowly ahead of Microsoft’s $3.65 trillion.
This leap follows a bullish note from Loop Capital, which raised its price target for Nvidia from $175 to $250. Analysts there cited stronger-than-expected demand for generative AI, calling this phase the start of a new “Golden Wave” of adoption—with Nvidia leading the charge.
Strong Fundamentals Fuel Investor Confidence
Despite Nvidia’s rapid climb, analysts note that its valuation isn’t excessive. The company trades at around 30x forward earnings, under its five-year average of 40x—suggesting earnings are keeping up with the hype.
Nvidia’s dominance reflects a broader trend, with the company providing the GPUs and infrastructure that power most modern AI applications. As demand for training large language models and running inference at scale explodes, Nvidia remains at the center of it all.
Apple, Microsoft, and Nvidia Jockey for Market Crown
Over the past year, Apple, Microsoft, and Nvidia have all taken turns as the most valuable publicly traded company. This time, it was Nvidia’s combination of solid earnings and AI momentum that propelled it back into the lead.
Meanwhile, Apple’s market cap stood near $3 trillion after a modest gain, while Microsoft was edged out despite steady performance.
Tech Stocks Ride AI Wave
The broader tech sector continues to benefit from the AI boom. The S&P 500’s technology index recently reached a new record, driven by rising valuations and renewed investor interest in infrastructure-heavy plays.
Nvidia alone has climbed more than 60% since its April dip, which came in response to geopolitical tension and tariff-related selloffs. Since then, markets have calmed as investors hope for a more stable trade environment.
Tesla’s AI Strategy Gains Momentum
Tesla is also riding the AI wave, but from a different angle. While much of the focus has been on its self-driving robotaxi project, the company is also quietly developing Optimus—a humanoid robot intended for use in factories and eventually homes.
CEO Elon Musk believes this initiative could be even bigger than Tesla’s core car business. The robot is being trained using Tesla’s AI models to handle repetitive manufacturing tasks, with future ambitions to enter other industries that rely on manual labor.
Robotics Seen as Next Frontier
Nvidia CEO Jensen Huang has referred to humanoid robotics as a “multitrillion-dollar industry,” specifically citing Tesla’s Optimus as an example of the category’s potential.
Tesla isn’t alone in this pursuit. Figure AI, a startup backed by Nvidia, is developing similar robots, with demo footage showing machines assisting human workers on factory floors. As the technology matures, robotics may become the next major battleground in enterprise AI.
Investors Watch Tesla Closely
Tesla’s stock has surged nearly 30% following positive headlines around its robotaxi rollout and AI ambitions. However, some analysts caution that much of the excitement may be priced in for now.
The real test will be whether Tesla can scale Optimus and turn it into a profitable business. Execution—and timing—will be everything.
