Nvidia set to eclipse Warren Buffett’s Berkshire Hathaway as 7th largest U.S. company

Nvidia Corp. is on track to become the seventh largest US company by market capitalization as it is on track to overtake Berkshire Hathaway Inc.

Nvidia NVDA shares,
+ 2.55%
are up 1.8% in trading on Tuesday, while shares of Berkshire Hathaway BRK.A,
+ 0.41%

+ 0.31%
are up 0.4%. If the gains hold until the close, Nvidia would end with a market cap of $ 661.3 billion, ahead of Warren Buffett’s $ 650.3 billion for Berkshire.

Tuesday’s stock move continues a strong rally in Nvidia shares, which have more than doubled in the past year and have risen nearly 7,500% in the past decade. By comparison, Berkshire shares have risen around 40% in the past year and 270% over a 10-year period.

Nvidia gained nearly $ 530 billion in market value from its lowest pandemic level on March 16, 2020, according to Dow Jones Market Data. Since hitting this pandemic low, Nvidia has added more market cap than the current market values ​​of Visa Inc. V,
JPMorgan Chase & Co. JPM,
+ 0.57%,
and Walmart Inc. WMT,
+ 0.06%

The company’s market capitalization gains since the March 2020 low are also higher than the combined market values ​​of Intel Corp. INTC,
and Broadcom Inc. AVGO,
+ 2.21%,
by Dow Jones Market Data. The earnings are slightly lower than TSM of Taiwan Semiconductor Manufacturing Co. Ltd.,
current market value, which stands at approximately $ 553 billion.

Nvidia could benefit from increased spending at Facebook’s parent company, Meta Platforms Inc. FB,
which last week gave a higher than expected forecast for its capital spending. The social media company is focused on using artificial intelligence and machine learning to bolster its recommendations to users, a trend that some analysts say will lead to new business for Nvidia.

Nvidia shares have gained 34% in the past three months as S&P 500 SPX,
+ 0.34%
increased 5.4% and as a PHLX Semiconductor Index SOX,
+ 1.10%
increased 4.6%.

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