Kingvidia’s reign

After the photo of Jensen Huang signing a fan’s shirt went viral, you may feel like you’ve heard enough about Nvidia breaking records.

But here’s one more for you: On Wednesday, the chipmaker surpassed Apple’s market cap, making it one of the most valuable public companies in the world.

The milestone comes as the company heads toward its 10-for-1 stock split tomorrow. While stock splits are more of a surface-level adjustment of price and don’t affect the underlying value of a company, they can make shares easier to trade—and more appealing to investors who can’t afford the current price tag. After the split, Nvidia shares will be trading at $120 instead of $1,225.

Any stock that has gained 207% over the past year has to relent eventually, but for now it seems the consensus is that Nvidia still has longer to run. Brian Colello, equity strategist at Morningstar, wrote that he raised his fair value estimate on the stock after the company’s latest earnings announcement in late May.

“We’re encouraged by management’s commentary that demand for its upcoming Blackwell products should exceed supply into calendar 2025, and we see no signs of AI demand slowing either,” Colello wrote.

In a Wall Street Journal overview of analyst ratings on the stock, 46 analysts rated Nvidia a buy, while 9 said overweight, 6 said hold, and not a single one endorsed selling the stock.

If you can’t beat ‘em

The semiconductor giant has continued to outrun its peers, fueled by continued high demand for its graphics-processing units that are used to run AI software

But for its competitors, maybe losing to the behemoth isn’t actually so bad. In fact, it looks like Nvidia’s fellow hardware companies may be looking to ascend on the coattails of the stock instead of dethroning it.

Firms such as Advanced Micro Devices (AMD), Intel (INTC), and Taiwan Semiconductor Manufacturing Co. (TSMC) have been boosted by Nvidia’s shadow—some for good reason, others simply because they’re vaguely connected to the AI trade. Here’s what the pros have to say about these companies:

• Advanced Micro Devices: One of Nvidia’s closest rival chipmakers unveiled a new set of chips on Monday. Shares have risen 21% year to date, but most of Wall Street sees even bigger things ahead: 36 analysts give the stock a buy rating, while 5 made an overweight call, 8 said hold, and none think investors should sell.
• Intel: “We expect Intel will remain the market share leader in central processing units, or CPUs, in PCs and servers for years to come,” wrote Colello. “However, Intel’s best days are likely behind it, as it currently has a chip manufacturing disadvantage against Taiwan Semiconductor, or TSMC, and its processor partners, such as AMD, Nvidia, and Apple.” A WSJ overview of analyst ratings agreed: The consensus is to hold the stock for now.
• Taiwan Semiconductor Manufacturing Co.’s shares reached an all-time high this morning following Nvidia’s market cap breaching $3 trillion, which makes sense given that Nvidia uses TSMC’s tech to design its AI chips. According to an WSJ overview, 26 analysts give the stock a buy rating, while 10 say overweight, and 2 recommend holding the stock.

All in all, while Nvidia is outshining everyone, other chip makers are still basking in its glow.—LB