AI chip giant NVIDIA’s stock price rose by 3.5% on Tuesday, officially surpassing Microsoft to become the world’s most valuable company. This has driven the leading semiconductor foundry TSMC and Taiwan’s stock market to reach new historical highs today. Despite NVIDIA and TSMC showing strong momentum this year, analysts remain optimistic about their future development.
According to Companiesmarketcap.com data, NVIDIA’s stock price rose by 3.5% to $135.58 on Tuesday, reaching a market cap of $3.335 trillion, officially surpassing Microsoft as the world’s most valuable company. Microsoft’s current market cap is approximately $3.317 trillion, slipping to second place, while Apple ranks third with $3.285 trillion.
Since the beginning of the year, NVIDIA’s stock price has surged by over 181%, with a 43% increase in the last month after announcing its first-quarter financial results in May. Since the end of 2022, NVIDIA’s stock price has increased more than ninefold.
Boosted by NVIDIA, TSMC’s stock price, as an important partner of NVIDIA, continues to hit new historical highs. Today, after the market opened, TSMC reported $953, reaching a high of $984 during trading, pushing its market cap to $25.52 trillion, approaching the $1000 mark and showing a stock price increase of over 63% so far this year. With TSMC’s significant rise, Taiwan’s stock market broke through the 23,000-point mark today, closing at 23,209 points with a 1.99% increase.
Although NVIDIA and TSMC have experienced significant increases, analysts remain bullish on the future development of these two companies. Rosenblatt Securities analyst Hans Mosesmann raised NVIDIA’s target price from $140 to $200 on Tuesday, indicating over a 50% upside potential, which would bring NVIDIA’s market cap close to $5 trillion.
Hans Mosesmann pointed out that NVIDIA’s Hopper, Blackwell, and Rubin series products have increased their market share in the most successful chip product cycle in Silicon Valley. While NVIDIA is best known for driving the AI revolution with its GPUs, he is encouraged by the increasing potential of the company to integrate software. Additionally, four foreign institutions, including Citi, Goldman Sachs, JPMorgan, and Morgan Stanley, have raised TSMC’s target price in their latest reports, with target prices ranging from $1,000 to $1,160.
With nine foreign institutional investors now having a target price for TSMC above $1,000, including Goldman Sachs, Citi Global, JPMorgan, Morgan Stanley, Bank of America, HSBC, UBS, Macquarie, and Haitong International Securities, the target prices for TSMC range from $1,000 to $1,160.