Now that Apple is out of the way, the race for S&P 500 market-value dominance is between Nvidia and Microsoft. And Microsoft is still the favorite.
Analysts pin Microsoft's projected value in 12 months at $3.6 trillion. That would make it the first S&P 500 company ever valued at that close to $4 trillion, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
Meanwhile, analysts think Nvidia's value in a year's time will slip behind Apple's.
Race To $4 Trillion
Amazingly, Microsoft stock only needs to do in the next 12 months what it already did in the past 12 months to hit $3.6 trillion.
Analysts think the stock will rise 13.7% in the next year to 485.29 a share. That's roughly equal to Microsoft stock's 13.5% rise in the past 12 months to 426.78.
Don't think it's just market speculation, either. Analysts also think the company's adjusted profit per share will hit $11.83 this fiscal year. That's up more than 20% from last fiscal year.
What About Nvidia?
Given that Nvidia shares are up 146% this year making the company worth $3 trillion, it's only natural to think the company would hit $4 trillion first. But that's not what analysts are calling for.
Analysts think the AI chip king's shares will only rise 0.8% in 12 months to $3.02 trillion. Apple, on the other hand, is expected to see its value rise 6.5% to $3.1 trillion.
Of course, the analysts might be wrong. Lots can happen in 12 months. But for now, it's a race for Microsoft to lose.
Analysts' Projected S&P 500 Market Value Champs
Based on 12-month price targets
| Company | Ticker | Ch. to target | Target value ($ trillion) |
|---|---|---|---|
| Microsoft | 13.7% | $3.6 | |
| Apple | 6.5% | $3.1 | |
| Nvidia | 0.8% | $3.0 | |
| Alphabet | 10.6% | $2.4 | |
| Amazon.com | 16.8% | $2.3 |
