Benzinga - by Chris Katje, Benzinga Staff Writer.
Semiconductor giant NVIDIA Corporation (NASDAQ:NVDA) shows no signs of slowing down. On the heels of strong first-quarter earnings and guidance, shares continue to hit new all-time highs.
The third most valuable company in the world is now inching closer to overtaking technology giants Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) for top honors.
What Happened: Nvidia shares closed up 7% to $1,140.53 on Tuesday, hitting new all-time highs and taking the market capitalization to $2.805 trillion.
Shares of the Santa Clara, California-based company are up over 270% in the last year. Nvidia first entered the $1 trillion market capitalization club in May 2023.
Only Microsoft at $3.198 trillion and Apple at $2.913 trillion currently have larger market capitalizations than Nvidia.
Investors are likely wondering when Nvidia, and at what share price, the semiconductor giant could pass the next two companies and take the most valuable crown.
Nvidia has 2.468 billion shares outstanding. Based on this share count and the current market capitalization, here are the share prices Nvidia needs to hit to pass Apple and Microsoft. The prices assume that Apple and Microsoft will not gain in value from the time of writing into the future.
- To pass Apple and become second most valuable company: $1,180.31 per share
- To pass Microsoft and become most valuable company: $1,295.79 per share
Why It's Important: After Nvidia's first-quarter earnings and guidance, many analysts raised their price targets with some higher than the prices mentioned above.
Nvidia announced an increased dividend and a stock split, two moves that won't change the valuation of the company, but could bring in new investors with the stock perceived as more affordable.
The stock could also become a new Dow Jones Industrial Average component in the future, according to financial market experts.
After hitting a market capitalization of $1 trillion in May 2023, Nvidia continues to experience one of the largest market gains in history and is in real distance to become the most valuable company in the world.
Read Next: EXCLUSIVE: Nvidia Dow Jones Inclusion ‘A Matter Of When’ — Will It Replace Intel?
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