Nvidia supremacy: Company becomes largest in the U.S. as stock extends big run
By Emily Bary
Nvidia set to become only the sixth company since 2001 to finish a session with the largest market cap in the U.S.
Nvidia's blistering rise through the ranks of the largest U.S. companies is set to culminate Tuesday with the chip maker taking over the title of most valuable.
With Nvidia shares (NVDA) up 3.3% in Tuesday afternoon trading, the company is on track to pass Microsoft Corp. (MSFT) at the close and become the largest U.S. company by market value. Nvidia's market cap is $3.329 trillion based on intraday activity, while Microsoft's is $3.321 trillion.
This is the first time that Nvidia has been the largest on an intraday basis, though its status as the new market-cap leader would become official if trends hold through the close.
Read: Nvidia's stock packs 50% more upside, says Wall Street's new biggest bull
Dating back to 2001, only five companies have gotten to call themselves most valuable in the U.S., according to Dow Jones Market Data. Those are Microsoft, Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Exxon Mobil Corp. (XOM) and the former General Electric (GE). Apple occupied the spot the longest during that span, while Amazon held down the position for only 13 sessions in 2019.
There's been a bit of shuffling among the top three in the past week, with Apple overtaking Microsoft at Thursday's close.
Nvidia shares have been on an eye-popping run over the past year or so as the company has proven itself the major financial beneficiary of the artificial-intelligence rush. Nvidia's stock is up 171% so far this year, and it's ahead 172% over the past 12 months.
The stock has been a major driver of the S&P 500 index's SPX performance so far this year, with Citi strategists saying late Monday that when looking at the 14.6% year-to-date climb in the index as of that point, Nvidia was responsible for 5.1 percentage points, almost as much as the contribution from the 493 index components that aren't among the large technology companies known as the Magnificent Seven.
An in general, Nvidia's market-cap rise has far-ranging implications, as it will force the Technology Select Sector SPDR ETF XLK to sell Apple shares and buy up almost $10 billion worth of Nvidia's stock to reflect the new weightings of the S&P Technology Select Sector Index that it tracks.
See more: Popular tech ETF forced to dump Apple stock, buy Nvidia in upcoming rebalancing
-Emily Bary
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06-18-24 1308ET
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