Nvidia just surpassed Microsoft as the world's most valuable public company
Semiconductor giant Nvidia Corp (NASDAQ:NVDA) is extending Tuesday's gains, last seen 3.5% higher and hitting a record high of $140.76 out of the gate. Nvidia just surpassed Microsoft (MSFT) to become the most valuable public company in the world, and in response, Stifel adjusted its price target to $165 from $1,140 to reflect the recent 10-for-1 stock split.
As the de factor leader in the artificial intelligence (AI) space, shares of Nvidia have outperformed all year. The equity boasts a 181.8% year-to-date lead and is up nearly 225% over the last 12 months.
Options traders are weighing in on the news. Already today, more than 841,000 calls and 512,000 puts have exchanged hands, volume that is five times the intraday amount. Most popular by far is the June 140 call, while new positions are opening the second most active contract, the 138-strike put from the same standard series.
While the majority of analysts had already adjusted their price targets to match the stock split, it looks like they underestimated Nvidia's gravity on Wall Street. The shares' 12-month target price of $125.10 is a 10.9% discount to Tuesday's close, so don't be surprised to see more price-target hikes in the future.