Semiconductor giant Nvidia Corporation ( NVDA ) briefly passed Microsoft Corporation ( MSFT ) and Apple Inc ( AAPL ) to become the most valuable company in the world last week.

While the move was short-lived, a drop below the $3 trillion market capitalization also proved to be short-lived for the chip stock.

What Happened: Nvidia ( NVDA ) hit a market capitalization of $3.33 trillion on June 18 to pass Microsoft ( MSFT ) and Apple ( AAPL ). The move comes around a year after Nvidia ( NVDA ) first hit a market capitalization of $1 trillion.

Two days later, after the market was closed on June 19 for Juneteenth, Nvidia ( NVDA ) hit a new all-time high of $140.76.

Shares began to fall after the all-time high was hit with closing prices of $130.78, $126.57 and $118.11 on June 20, June 21 and June 22, respectively.

The chart from Benzinga Pro shows the downward trend for Nvidia ( NVDA ) in recent days, coming as shares had steadily been climbing during the month of June.

Benzinga recently asked readers if they thought the move below a market capitalization of $3 trillion would be a momentary move or last for some time.

"Do you think NVDA will reclaim $3 trillion market cap in 1 month, 3 months or next year?" Benzinga asked.

The results were:

1 Month: 37%

3 Months: 36%

Next Year: 27%

The top response ended up being correct with Nvidia ( NVDA ) reclaiming the $3 trillion level in only a couple of days after losing the key milestone.

Related Link: NVIDIA ( NVDA ) ‘Marching Toward A Three-Trillion Market Cap’: 11 Analysts Size Up Q1 Results As AI Leader ‘Shows No Sign Of Slowing Down’

Why It's Important: Nvidia ( NVDA ) stock has soared over the last year, gaining 207%. Nvidia ( NVDA ) stock is up 152% year-to-date in 2024.

A look at the chart below from Benzinga Pro shows the steady one-year rise and that the short term drop after hitting all-time highs is small when compared to the one-year or year-to-date chart.

The recent earnings report and stock split from Nvidia ( NVDA ) may signal the end of recent catalysts, potentially shifting investor focus away from the stock as they seek undervalued opportunities for the second half of 2024.

Nvidia ( NVDA ) recently became the second-largest holding in the Technology Select Sector SPDR Fund ( XLK ) after a rebalancing took the stock to a 20.7% weighting. Microsoft ( MSFT ) ranks first at 22.4% and Apple ( AAPL ) ranks third at 4.4%.

The rebalancing came with Nvidia ( NVDA ) shares ahead of Apple ( AAPL ) and will see the chip stock remain a heavier weighting until the next rebalancing, showing the impact the short-term move of becoming the most valuable company in the world could have.

Nvidia ( NVDA ) could have a future catalyst of being added to the Dow Jones Industrial Average, as predicted by several market experts. The addition of Nvidia ( NVDA ) to the well-known stock index would see ETFs that track the index needing to accumulate shares, like the SPDR Dow Jones Industrial Average ETF ( DIA ) .

With a gain of over 200% over the last year, investors may turn elsewhere, but Nvidia ( NVDA ) remains one of the best ways to play the growth of artificial intelligence, according to analysts and experts.

NVDA Price Action: Nvidia ( NVDA ) shares trade at $123.65 at the time of writing, with a market capitalization of $3.037 trillion, ranking third behind Microsoft ( MSFT ) ($3.36 trillion) and Apple ( AAPL ) ($3.28 trillion).

The study was conducted by Benzinga in June 2024 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 126 adults.

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