On Wednesday, a major news in the market was that NVIDIA, the darling of the artificial intelligence sector, surpassed Apple in market value, becoming the third company to reach a valuation of $3 trillion.
Now, market observer Louis Navellier believes that Microsoft will be NVIDIA's next target to surpass, with NVIDIA's market value expected to reach $5 trillion. Navellier is the Chief Investment Officer of Navellier & Associates, Inc., a family office that manages over $1 billion.
Navellier stated, "On Wednesday, NVIDIA's market value reached $3.012 trillion, overtaking Apple's $3.003 trillion, and is poised to surpass Microsoft's $3.151 trillion market value in the coming weeks. I anticipate that NVIDIA will become the first company to reach a market value of $5 trillion in the coming years."
This Friday, after the closing bell, NVIDIA will conduct a 10-for-1 stock split. Post-split, NVIDIA stock may qualify for inclusion in the Dow Jones Industrial Average.
Analysts are optimistic about the company's execution and AI prospects. On Wednesday, BofA Securities analysts reaffirmed NVIDIA as their top industry pick, with a target price of $1,500, the highest target price in the market. They believe NVIDIA has the most advantage in providing AI services and are not concerned about competition. "Despite challenges from competitors (AMD, Intel, custom chips, or ASICs), we believe NVIDIA has a multi-year lead in terms of performance, product line (Blackwell and its successors), market share, scale, and developer support (over 5 million developers)," the analysts stated.
If the market value reaches $5 trillion, it would mean a share price of $2,032, 66% higher than the current level. Post-split, this equates to approximately $203 per share.
