Nvidia Stock Surges Above $1,000 up by 5%

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Nvidia (NVDA) has surged above the 1,000 level for the first time in a year, with its market cap racing past $2.5 trillion. The chip giant's earnings and sales growth have led it to pass or challenge Apple (AAPL) and Microsoft (MSFT) as the world's most valuable company. Nvidia (NVDA) stock surged 15.1% last week to a record 1,064.19, blasting past 1,000. The chip giant increased its market cap by $338 billion to $2.661 trillion as of May 24, just behind Apple ($2.913 trillion) and not far from Microsoft ($3.196 trillion).

At the end of last year, Nvidia (NVDA) had a $1.22 trillion market cap, lagging Google parent Alphabet (GOOGL) and Amazon.com (AMZN) in addition to Apple and Microsoft. Out of the Magnificent Seven stocks, Nvidia only had a higher valuation than Meta Platforms (META) and Tesla (TSLA).

On May 22, Nvidia (NVDA) reported Q1 2025 earnings per share of $6.12, up 461% vs. a year earlier, with revenue soaring 265% to $26.04 billion. Analysts expect Nvidia earnings to soar 107% in fiscal 2025 to $26.85 a share, followed by a 31% gain in fiscal 2026 to $35.12.

Microsoft, Apple, and the other Magnificent Seven stocks have various catalysts, but a lot of that reflects AI growth, or at least AI growth hopes that are good news for Nvidia. Megacap techs are spending massively on AI, with a lot of that going directly on Nvidia chips.

At the current $2.662 trillion valuation, Nvidia (NVDA) just needs a 12.8% advance to reach $3 trillion, which would also pass up Apple's current valuation and greatly narrow the gap with Microsoft. Nvidia stock rose 4.5% early Tuesday, pushing the market cap above $2.75 trillion.

The Dow Jones Industrial Average fell Tuesday morning, as Wall Street digested economic data in the form of two housing reports. Artificial intelligence giant Nvidia rallied to more record highs, while GameStop (GME) soared on the stock market today after raising nearly $1 billion from a stock sale.

Technically, NVIDIA Corp (NVDA) stock is currently overbought with a Relative Strength Index (RSI) of 78.10.