With Loop Capital raising its target, Nvidia leads a tech rally, overtaking Microsoft after rebounding 60% from April lows.
Nvidia’s market capitalisation rose to $3.76 trillion on Wednesday, overtaking Microsoft and making the chipmaker the most valuable publicly listed company around the globe.
This milestone came as the company’s shares jumped over 4% to close at a record high of $154.10. After comparison, Microsoft’s capitalisation stood at $3.65 trillion following a 0.2% rise in its shares, while Apple followed at $3.0 trillion after gaining 0.4%.
Following a revised valuation by Loop Capital, Nvidia shares climbed sharply, with the brokerage lifting its price target from $175 to $250.The firm also reaffirmed its ‘buy’ rating, citing robust demand for generative Artificial Intelligence (AI) technologies. Nvidia’s dominance in AI computing positions it as a key beneficiary of the sector’s growth.
As a result, Nvidia’s performance contributed to a broader upswing in technology shares. The Standard and Poor’s (S&P) 500 tech index rose 0.9% to reach a new record high and has now gained nearly 6% so far in 2025.
Despite its recent surge, Nvidia trades at around 30 times forward earnings, which is below its five-year average of 40. According to LSEG data, this reflects rapidly rising earnings estimates that continue to match the pace of the company’s share price growth.
Moreover, Nvidia’s stock has climbed more than 60% since 4 April, recovering from losses triggered by American President Donald Trump’s announcement of new global tariffs. Investors now anticipate that the administration will negotiate trade agreements to soften the impact of those measures.
Over the past year, the title of the world’s most valuable company has shifted frequently among Nvidia, Microsoft, and Apple. Microsoft had recently overtaken Nvidia earlier in June.
