TLDR
- Nvidia and Microsoft stocks both hit fresh all-time highs Thursday, with Nvidia closing at $155.02 and Microsoft at $497.45
- Nvidia CEO Jensen Huang said AI and robotics represent a “multitrillion-dollar growth opportunity” at the annual shareholder meeting
- Nvidia reclaimed the title of world’s most valuable company with a $3.78 trillion market cap, ahead of Microsoft’s $3.7 trillion
- Morgan Stanley raised Microsoft’s price target to $530 from $482, citing strong positioning for GenAI innovation
- Analysts are targeting Nvidia shares to reach $200-$250, representing potential 30-70% upside from current levels
Nvidia shares edged up 0.5% Thursday to close at $155.02, setting another fresh all-time high. The chipmaker has been on a tear this week following comments from CEO Jensen Huang.
Microsoft also joined the party, adding 1% to reach $497.45. Both tech giants topped records they had just set a day earlier.
The momentum started Wednesday when Nvidia jumped more than 4%. Huang reportedly told investors at the annual shareholder meeting that AI and robotics represent a “multitrillion-dollar growth opportunity.”
That statement seems to have lit a fire under the stock. Nvidia’s market value now stands at $3.78 trillion, officially putting it back on top as the world’s most valuable company.
Microsoft trails close behind at $3.7 trillion. The two companies have been trading places for the top spot in recent months.
Wall Street Gets Bullish on Both Stocks
Morgan Stanley analysts decided Thursday was a good day to get more optimistic about Microsoft. They bumped their price target up to $530 from $482.
The analysts like Microsoft’s positioning for what they call the “upcoming GenAI innovation cycle.” They think the company’s Azure cloud business is accelerating thanks to AI demand.
They’re also impressed with Microsoft’s expense control. The firm expects mid-teens compound annual growth for the company’s earnings per share.
Nvidia is getting even more love from analysts. Loop Capital just raised its target to $250, setting a new high bar for the stock.
Truist, Barclays, and Rosenblatt have also bumped up their targets recently. Most are now looking for the stock to hit $200 or higher.
That would represent roughly 30% upside from current levels. The most bullish case sees potential for 70% gains, pushing shares toward $250.
Technical Picture Looks Strong Despite Some Concerns
The charts are painting a pretty picture for Nvidia right now. The stock broke out of a trading range and appears headed higher.
Pattern analysis suggests the stock could easily hit $200 based on the size of its recent consolidation. More aggressive projections point to that $250 level.
The weekly indicators are mostly supportive. The MACD histogram shows strengthening momentum that could sustain the uptrend.
But there are some yellow flags worth watching. The stochastic indicator has moved into overbought territory on the weekly chart.
Volume has also been declining on the recent rally. That’s not necessarily a deal-breaker, but it does suggest some caution might be warranted.
The good news is that potential catalysts could solve the volume problem. Nvidia’s Q2 earnings report in August looms as a major event.
Analysts expect the company to report strong results despite some uncertainty around China sales. New projects in Saudi Arabia, Taiwan, and Europe should help offset any weakness.
Institutional investors continue to support both stocks. They own about 65% of Nvidia’s shares and have been net buyers recently.
The selling pressure from some institutions has been more than offset by new buying. That provides a solid foundation for continued gains.
Nvidia ended Q1 with more than $53.5 billion in cash, up 24% from the previous quarter. The company is essentially debt-free and could return more capital to shareholders.
Both companies have benefited from the broader recovery in tech stocks since April. The sector had stumbled earlier in the year but has bounced back strongly as AI enthusiasm returned.
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