From Nasdaq: 2024-06-20 06:30:00

On Tuesday, June 18, Nvidia (NASDAQ: NVDA) surpassed Microsoft (NASDAQ: MSFT) to become the world’s most valuable publicly traded company, with a market cap over $3.3 trillion. Investors are debating whether to sell, hold, or buy, but history shows companies tend to stay at the top once they reach the top spot.

For example, companies like Microsoft, ExxonMobil, and Apple enjoyed prolonged periods at the top, with stock prices continuing to rise even after reaching the number one spot. Investors might be surprised to learn that previous most valuable stocks outperformed the S&P 500 for the next five years after reaching the top.

Nvidia, currently benefiting from the surge in AI adoption, has seen its stock price skyrocket by over 200% in the past year. While the valuation is causing nervousness among some investors, history suggests that the stock could continue to climb as the AI trend unfolds.

Investors looking to buy stock in Nvidia may want to consider other options, as The Motley Fool Stock Advisor team recently identified 10 stocks they believe will perform better in the coming years. Despite not making the cut, Nvidia has seen significant growth and could continue to outperform the market as the AI trend evolves.



Read more at Nasdaq: Nvidia Just Passed Microsoft to Become the World’s Most Valuable Stock. Here’s What History Says Happens Next.