Prediction: Nvidia Is About to Leap Past Microsoft to Become the World's Most Valuable Company

Core Viewpoint - Nvidia is predicted to surpass Microsoft in market capitalization within a short timeframe, potentially within days or weeks [1][3]. Group 1: Nvidia's Financial Performance - Nvidia requires a gain of approximately 4% in its market cap to eclipse Microsoft [3]. - The company is expected to report fiscal Q1 2026 revenue of around $43 billion and earnings of $0.87 per share, with guidance in line with analysts' estimates [4]. - Nvidia's revenue growth for fiscal Q4 2025 was 78% year-over-year, significantly outpacing Microsoft's 13% growth in fiscal Q3 2025 [8]. - Nvidia's earnings increased by 82% year-over-year based on GAAP, while Microsoft's earnings rose by 18% [9]. Group 2: Valuation Metrics - Nvidia's price-to-earnings-to-growth (PEG) ratio is 1.94, indicating a more attractive valuation compared to Microsoft's PEG ratio of 2.13 [10]. Group 3: Market Dynamics - Positive quarterly updates from Nvidia could serve as catalysts for stock price increases, potentially allowing it to surpass Microsoft [5][6]. - There are concerns that Nvidia's growth could be hindered by U.S. trade policies, slowing demand for AI chips, and increasing competition [11]. - Despite potential challenges, Nvidia's stock is expected to deliver strong returns over the coming decade [13].