This week, Nvidia, Microsoft, and Apple have all made significant moves in the race to be named the world's most valuable company, with investors showing strong interest in the future of AI technology. State Street's Technology Select Sector SPDR, a major tech ETF with nearly $80 billion in assets, is also gearing up for a major rebalance.
Nvidia briefly surpassed Microsoft as the most valuable company, with Apple not far behind. The chipmaker's impressive performance this year, with shares up nearly 160%, has solidified its position as a leader in AI chips. With a record $26 billion in revenue last quarter and a 10-for-1 stock split, Nvidia's growth shows no signs of slowing down.
As the XLK ETF prepares for a rebalance, Nvidia is set to overtake Apple in terms of weight in the fund. This rebalancing will require selling Apple shares to buy Nvidia shares, marking a significant shift in the composition of the ETF.
CEO Jensen Huang, known for his signature black leather jacket and charismatic leadership style, has garnered a cult following around the world. His recent trip to Taiwan, his birth country, was met with enthusiastic support, including the honor of throwing out ceremonial first pitches at baseball games.
Overall, the unprecedented competition among Nvidia, Microsoft, and Apple for the title of most valuable company reflects the growing importance of AI technology in the eyes of investors. Nvidia's continued success and strong market performance suggest that the company is well-positioned for future growth in the AI sector.