Anticipated Jump: Expected Stock Price to Surpass Nvidia's Before Year-End Financial Reports Reveal
In a recent analysis by Investor's Business Daily, Nvidia has been predicted to retain its position as the most valuable company in the world next year. Current market capitalization estimates place Nvidia second, just behind Apple with a valuation of $3.4 trillion, and Microsoft trailing slightly behind with a market cap of $3.1 trillion.
The analysis, based on data from S&P Global Market Intelligence and MarketSurge, highlights Nvidia's dominance in the AI and GPU markets. As the leading manufacturer of GPUs critical for AI workloads, Nvidia has no direct competitors close to its scale. For instance, AMD and Taiwan Semiconductor Manufacturing have much smaller market caps, at $194.67 billion and $861.41 billion respectively.
Nvidia's strong demand from large AI-focused tech clients, such as Alphabet, Amazon, Meta, and Microsoft, also supports its sustained growth. The company is growing its automotive revenue at over 70% yearly and positioning itself as a key player in self-driving car technology and AI-powered robotics.
Moreover, Nvidia's commitment to leading ESG and sustainability efforts bolsters investor confidence amid increasing regulatory scrutiny.
While companies such as Apple, Microsoft, Alphabet, and Tesla are investing heavily in AI and autonomous tech, their market capitalizations in mid-2025 remain well below Nvidia’s peak valuation. Despite regulatory risks and competition, Nvidia's integrated AI chip leadership and sustainability commitments keep it ahead, with no specific forecasted overtaking by other companies by 2026 reported in the sources.
In contrast, Microsoft's stock might have more potential for growth according to analysts, with an implied gain of around 17% over the next 12 months. However, Nvidia's stock has already gained around 200 percent last year and an additional 200 percent this year.
The information technology sector is expected to have the highest earnings growth rate of all S&P 500 sectors at 15.6% compared to the previous year. Despite Nvidia's significant gains, if Nvidia were excluded from the information technology sector, the year-over-year earnings growth would be lower at 8%.
The vast majority of analysts recommend buying Nvidia's stock. However, the analysts' current price targets leave little room for further upside, with an implied gain of 4.4% over the next 12 months. The analysis suggests that investors might want to consider Microsoft's stock before Nvidia's next quarterly earnings.
It's important to note that there is a potential conflict of interest for the publisher Boersenmedien AG as Mr. Leon Muller has positions in Microsoft.
In summary, while Microsoft could potentially overtake Nvidia as the most valuable company, no authoritative sources have reported a clear forecast for this to happen by 2026. Nvidia's unique leadership in AI hardware and broad tech partnerships give it a commanding edge unmatched by peers.
Investors may want to consider investing in Nvidia due to its dominance in the AI and GPU markets, strong demand from major tech clients, and commitment to leading ESG and sustainability efforts. Although Microsoft's stock might have more potential for growth according to analysts, Nvidia's stock has already experienced significant gains in the past two years.
