Constellation Research founder R. “Ray” Wang revealed his price target for NVIDIA shares during an appearance on “Varney & Co.”
Nvidia, Microsoft and Apple competed this week to be the world’s most valuable company as investors make big bets on the future of AI.
These moves come as State Street’s Technology Select Sector SPDR, the world’s largest tech exchange-traded fund with nearly $80 billion in assets, prepares for a major rebalancing.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NVDA | NVIDIA Inc. | 130.78 | -4.80 | -3.54% |
| AAPL | Apple. | 210.28 | +0.60 | +0.29% |
| MSFT | Microsoft | 449.32 | +3.62 | +0.81% |
““It’s an unusual event to have three securities with market capitalizations over $3 trillion, all in the same sector. It’s unheard of. It’s never happened before,” Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors, told Fox Business.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| XLK | Technology Select Sector SPDR ETF | 228.81 | -2.60 | -1.12% |
Nvidia overtook Microsoft to become the world’s most valuable company for the first time on Tuesday, but the two companies remain neck-and-neck with Apple as volatility continues this week.
The chipmaker makes up just under 6% of the XLK ETF, while Apple and Microsoft each make up more than 21%, according to the firm. After the rebalancing, Nvidia will overtake Apple.
State Street Technology Select Sector SPDR (XLK) (State Street Global Advisors)
““Right now the fund isn’t rebalancing, so Apple is the second-largest security, which means that to buy Nvidia, you have to rebalance and sell Apple,” Bartolini said.
The rebalancing will take place after the close of trading on Friday, with fund changes taking effect on Monday.
Nvidia continues to lead the AI chip race, with its stock price soaring nearly 160% this year. Revenue rose to a record $26 billion last quarter, up 262% from the same period a year ago. The company also completed a 1-for-10 stock split that began trading on June 10 and increased its quarterly dividend by 150% to 10 cents per share.
Constellation Research founder R. “Ray” Wang expects the stock to surpass $200 this year.
“They’re dominating in market share, and competitors are barely catching up. Of course their product roadmap only looks at a tenth of what they can offer. They’re making GPUs the standard for AI, and the growth numbers don’t lie,” Wang said during an appearance on “Varney & Co.” “If you look at the revenue, they’re up there. Even if their P/E numbers are insane, they’re catching up in revenue. And of course they have a visionary founder.”
Jensen Huang, co-founder and chief executive officer of NVIDIA Corp., speaks during a press conference in Taipei, Taiwan, Tuesday, June 4, 2024. (Photographer: Annabelle Chee/Bloomberg via Getty Images)
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CEO Jensen Huang, known for his black leather jacket, has a cult following around the world thanks to the company’s booming business, and he was given rock-star treatment during a recent visit to his native Taiwan.
Nvidia Corp. co-founder and CEO Jensen Huang speaks in Taipei, Taiwan. (Annabel Chee/Bloomberg via Getty Images/Getty Images)
He also threw the ceremonial first pitch before the game between CTBC Brothers and Wei Chuan Dragons at the Taipei Dome.
Nvidia CEO Jensen Huang throws the ceremonial first pitch at the CPBL game between CTBC Brothers and Wei Chuan Dragons at Taipei Dome in Taipei, Taiwan on June 1, 2024. (Photo: Gene Wang/Getty Images)
