Nvidia’s (NVDA) market capitalization is once again above $3 trillion and ahead of Apple (AAPL) as the company’s share price soars.
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Nvidia is now the second-largest publicly traded U.S. company by market capitalization, behind only Microsoft (MSFT). The chipmaker has re-entered the $3 trillion club as its stock soars 6% on May 13 to rise above $130 a share. Nvidia’s market cap now stands at $3.2 trillion, ahead of Apple at $3.15 trillion.
NVDA stock was last above $3 trillion on Feb. 28 of this year, according to market data. The rally on May 13 builds on a 5% gain the day before on news of a U.S.-China trade deal that is likely to ease the sale of Nvidia microchips and processors within the Chinese market.
Saudi Impact
Nvidia’s stock is also getting a boost from news that the U.S. company is partnering with Saudi Arabia’s state-backed Humain on a 500 megawatt data center project. Nvidia CEO Jensen Huang is attending a Saudi-U.S. Investment Forum in Riyadh this week.
The data center project with Saudi Arabia is expected to require several hundred thousand of Nvidia’s most advanced chips and processors over the next five years. NVDA stock had been on a downswing in recent months but is now rebounding. The company is scheduled to report its next quarterly financial results on May 28, which many analysts say will be a test for the company and its stock.
So far this year, NVDA stock has declined 3%.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy, five Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $164.35 implies 25.84% upside from current levels.
