Nvidia Reclaims $3 Trillion: 37% Of Benzinga Readers Nailed Prediction For Under A Month – NVIDIA (NASDAQ:NVDA)

Semiconductor giant Nvidia Corporation NVDA briefly passed Microsoft Corporation MSFT and Apple Inc AAPL to become the most valuable company in the world last week.

While the move was short-lived, a drop below the $3 trillion market capitalization also proved to be short-lived for the chip stock.

What Happened: Nvidia hit a market capitalization of $3.33 trillion on June 18 to pass Microsoft and Apple. The move comes around a year after Nvidia first hit a market capitalization of $1 trillion.

Two days later, after the market was closed on June 19 for Juneteenth, Nvidia hit a new all-time high of $140.76.

Shares began to fall after the all-time high was hit with closing prices of $130.78, $126.57 and $118.11 on June 20, June 21 and June 22, respectively.

The chart from Benzinga Pro shows the downward trend for Nvidia in recent days, coming as shares had steadily been climbing during the month of June.

Related Link: NVIDIA ‘Marching Toward A Three-Trillion Market Cap’: 11 Analysts Size Up Q1 Results As AI Leader ‘Shows No Sign Of Slowing Down’

Why It’s Important: Nvidia stock has soared over the last year, gaining 207%. Nvidia stock is up 152% year-to-date in 2024.

A look at the chart below from Benzinga Pro shows the steady one-year rise and that the short term drop after hitting all-time highs is small when compared to the one-year or year-to-date chart.

Nvidia recently became the second-largest holding in the Technology Select Sector SPDR Fund XLK after a rebalancing took the stock to a 20.7% weighting. Microsoft ranks first at 22.4% and Apple ranks third at 4.4%.

The rebalancing came with Nvidia shares ahead of Apple and will see the chip stock remain a heavier weighting until the next rebalancing, showing the impact the short-term move of becoming the most valuable company in the world could have.

Nvidia could have a future catalyst of being added to the Dow Jones Industrial Average, as predicted by several market experts. The addition of Nvidia to the well-known stock index would see ETFs that track the index needing to accumulate shares, like the SPDR Dow Jones Industrial Average ETF DIA.

With a gain of over 200% over the last year, investors may turn elsewhere, but Nvidia remains one of the best ways to play the growth of artificial intelligence, according to analysts and experts.

NVDA Price Action: Nvidia shares trade at $123.65 at the time of writing, with a market capitalization of $3.037 trillion, ranking third behind Microsoft ($3.36 trillion) and Apple ($3.28 trillion).

The study was conducted by Benzinga in June 2024 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 126 adults.

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