Nvidia vs Microsoft: Which AI heavyweight will hit $4 trillion first?
The race to become the first $4 trillion company is on.
Artificial-intelligence heavyweights Microsoft and Nvidia continue to battle to be the world's most valuable company by market capitalization, after surpassing the $3 trillion milestone last year.
Twice this month, Microsoft unseated Nvidia as the most valuable company, but Nvidia regained its title Wednesday. On Thursday, its shares clinched a four-day winning streak and record close of $155.02. That put Nvidia's market value at $3.782 trillion, ahead of Microsoft's $3.697 trillion.
Now, it's just a matter of who gets to $4 trillion first. Wedbush analysts say we will find out soon enough.
'We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club," the analysts wrote in a research note Friday.
They characterize Nvidia and Microsoft as the so-called poster children of the AI revolution, which they say 'represents the biggest tech transformation in over 40 years."
After all, Nvidia's momentous ascent has been the stuff of dreams for AI fans. Interest in AI reached new heights when ChatGPT launched in late 2022, and Nvidia's powerful graphics processing units emerged as a solution to power the technology. Today, Nvidia is widely regarded as the chip maker of choice for hyperscalers, Microsoft included.
Nvidia stands at the forefront, 'as they are the only game in town with their chips the new gold and oil." The company's dominance allows CEO Jensen Huang to have 'the best perch and vantage point to discuss overall enterprise AI demand," the analysts contended.
Microsoft's AI story has been equally compelling for bulls. The company once known for the Windows operating system and Microsoft Office suite has rebranded itself into an AI enterprise—if the language in its latest earnings report is any indication. Azure, Microsoft's flagship cloud computing platform, offers a suite of tools that allow developers to build and deploy AI applications.
Its footing in the cloud computing space, alongside other hyperscalers like Alphabet, is a key advantage: The need for cloud compute is only expected to grow as the adoption of AI, a power-intensive technology, ramps up.
As more AI use cases are identified, the Wedbush team expects Amazon Web Services and Google Cloud Platform to 'acquire AI-capable chips, build AI-capable service offerings, and sell those services into their respective installed bases."
Nvidia stock rose 1.3% to $157.11 on Friday. Wedbush maintains an Outperform rating and $175 price target on the shares.
Microsoft was flat at $497.67. The firm rates Microsoft at Outperform with a $600 target price.
Wedbush Fund Advisers launched the Dan IVES Wedbush AI Revolution ETF earlier this month, which includes Microsoft, Nvidia, and the other Magnificent Seven tech stocks.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
OpenAI turns to Google's AI chips to power its products: The Information
OpenAI has recently begun renting Google's artificial intelligence chips to power ChatGPT and other products, The Information reported on Friday, citing a person involved in the move, which marks the first time OpenAI has used non-Nvidia chips in a meaningful way, shows the Sam Altman-led company's shift away from relying on backer Microsoft's data centres, potentially boosting Google's tensor processing units (TPUs) as a cheaper alternative to Nvidia's graphics processing units (GPUs), the report one of the largest purchasers of Nvidia's GPUs, OpenAI uses AI chips to train models and also for inference computing, a process in which an AI model uses its trained knowledge to make predictions or decisions based on new hopes the TPUs, which it rents through Google Cloud, will help lower the cost of inference, according to the Google, an OpenAI competitor in the AI race, is not renting its most powerful TPUs to its rival, The Information said, citing a Google Cloud OpenAI and Google did not immediately respond to Reuters requests for planned to add Google Cloud service to meet its growing needs for computing capacity, Reuters had exclusively reported earlier this month, marking a surprising collaboration between two prominent competitors in the AI Google, the deal comes as it is expanding external availability of its in-house TPUs, which were historically reserved for internal use. That helped Google win customers including Big Tech player Apple as well as startups like Anthropic and Safe Superintelligence, two OpenAI competitors launched by former OpenAI leaders.
Mint
3 hours ago
- Mint
ChatGPT Record to transcribe audio meetings
Meetings are critical for collaboration, but capturing their essence is often difficult. Manually scribbling notes often misses key points, leading to miscommunication or forgotten action items. Post-meeting, summarizing discussions takes hours, and transcribing audio manually is tedious, error-prone, and time-consuming. This chaos frustrates teams, delays decisions, and risks losing valuable insights from brainstorms or client calls. ChatGPT Record solves this by automatically transcribing audio, generating structured summaries, and transforming them into actionable outputs, saving time and ensuring clarity. How to access: Currently, it's only available for the macOS desktop app and for ChatGPT Enterprise, Edu, Team, and Pro workspaces. Visit ChatGPT Record can help you • Transcribe meetings: Instantly convert audio from meetings or voice notes into text.• Summarize discussions: Create structured summaries saved as canvases in your chat history.• Transform outputs: Convert summaries into emails, project plans, or code scaffolds.• Reference past recordings: Use prior transcripts for context-aware responses. Example Imagine you're leading a team brainstorming session for a product launch. The room buzzes with ideas—marketing strategies, feature tweaks, and timelines but you're struggling to keep up. • Start recording: Click the Record button, grant microphone permissions, and confirm team consent per local laws.• Speak freely: As your team debates pricing and launch dates, ChatGPT transcribes live, displaying a timer. You pause to clarify a point, then resume.• Generate notes: After the meeting ends, hit Send. The transcript uploads, and a canvas appears with a summary, highlighting marketing ideas, assigned tasks, and deadlines.• Transform: Ask ChatGPT to draft a project plan from the canvas, including a Gantt chart outline. Export it as a PDF and share it with stakeholders. What makes ChatGPT Record special? • Real-time transcription: Live transcription with pause/resume flexibility.• Actionable outputs: Summaries can be repurposed into plans, emails, or code.• Privacy-first: Audio files are deleted post-transcription; transcripts follow workspace retention policies. Mint's 'AI tool of the week' is excerpted from Leslie D'Monte's weekly TechTalk newsletter. Subscribe to Mint's newsletters to get them directly in your email inbox. Note: The tools and analysis featured in this section demonstrated clear value based on our internal testing. Our recommendations are entirely independent and not influenced by the tool creators. Jaspreet Bindra is co-founder and CEO of AI&Beyond. Anuj Magazine is also a co-founder.
Mint
4 hours ago
- Mint
Nvidia vs Microsoft: Which AI heavyweight will hit $4 trillion first?
The race to become the first $4 trillion company is on. Artificial-intelligence heavyweights Microsoft and Nvidia continue to battle to be the world's most valuable company by market capitalization, after surpassing the $3 trillion milestone last year. Twice this month, Microsoft unseated Nvidia as the most valuable company, but Nvidia regained its title Wednesday. On Thursday, its shares clinched a four-day winning streak and record close of $155.02. That put Nvidia's market value at $3.782 trillion, ahead of Microsoft's $3.697 trillion. Now, it's just a matter of who gets to $4 trillion first. Wedbush analysts say we will find out soon enough. 'We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club," the analysts wrote in a research note Friday. They characterize Nvidia and Microsoft as the so-called poster children of the AI revolution, which they say 'represents the biggest tech transformation in over 40 years." After all, Nvidia's momentous ascent has been the stuff of dreams for AI fans. Interest in AI reached new heights when ChatGPT launched in late 2022, and Nvidia's powerful graphics processing units emerged as a solution to power the technology. Today, Nvidia is widely regarded as the chip maker of choice for hyperscalers, Microsoft included. Nvidia stands at the forefront, 'as they are the only game in town with their chips the new gold and oil." The company's dominance allows CEO Jensen Huang to have 'the best perch and vantage point to discuss overall enterprise AI demand," the analysts contended. Microsoft's AI story has been equally compelling for bulls. The company once known for the Windows operating system and Microsoft Office suite has rebranded itself into an AI enterprise—if the language in its latest earnings report is any indication. Azure, Microsoft's flagship cloud computing platform, offers a suite of tools that allow developers to build and deploy AI applications. Its footing in the cloud computing space, alongside other hyperscalers like Alphabet, is a key advantage: The need for cloud compute is only expected to grow as the adoption of AI, a power-intensive technology, ramps up. As more AI use cases are identified, the Wedbush team expects Amazon Web Services and Google Cloud Platform to 'acquire AI-capable chips, build AI-capable service offerings, and sell those services into their respective installed bases." Nvidia stock rose 1.3% to $157.11 on Friday. Wedbush maintains an Outperform rating and $175 price target on the shares. Microsoft was flat at $497.67. The firm rates Microsoft at Outperform with a $600 target price. Wedbush Fund Advisers launched the Dan IVES Wedbush AI Revolution ETF earlier this month, which includes Microsoft, Nvidia, and the other Magnificent Seven tech stocks.
