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ETFs Poised to Win in the MSFT vs. NVDA Market Cap Battle
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The battle for Wall Street’s top spot has intensified, with Microsoft (MSFT - Free Report) once again overtaking NVIDIA (NVDA - Free Report) to become the world’s most valuable public company. As of June 9, Microsoft’s market capitalization surged to approximately $3.5 trillion, narrowly eclipsing NVIDIA’s $3.47 trillion, reigniting a high-stakes rivalry that reflects deeper shifts in the tech and AI ecosystems (read: Why Big Tech Stocks Are Powering Market Gains Again).
A Clash of Titans
The tug-of-war is a showdown between two different kinds of tech leadership. Here’s a quick summary:
Microsoft, long a pillar of enterprise software and cloud infrastructure, has successfully transformed itself into a modern AI powerhouse. Its aggressive integration of OpenAI's models into its suite of products, from Microsoft 365 to Azure Copilot, has made artificial intelligence more accessible and enterprise-ready.
NVIDIA, the dominant player in AI hardware, remains the undisputed king of GPUs. Its chips power everything from large language models to autonomous vehicles and advanced gaming. NVIDIA’s market value skyrocketed over the past two years as demand for its AI chips exploded globally.
In a nutshell, NVIDIA may power the AI revolution with its cutting-edge chips, but Microsoft powers the ecosystem. Azure remains one of the world’s fastest-growing cloud platforms, while Microsoft 365 and Teams are now foundational to modern digital workflows.
Microsoft’s rally has been powered by its robust cloud growth, expanding AI integrations (via OpenAI), and enterprise dominance. The software maker has rallied about 30% since its April lows and added about $800???billion in market value. Investors backing Microsoft appreciate its diversified revenue streams, recurring enterprise income, and sustainable growth path tied to AI.
NVIDIA, on the other hand, is riding a historic chip demand cycle as it sells GPUs for AI workloads at breakneck speed. Since bottoming at just over $94 in early April, NVDA stock has soared nearly 50%, adding over $1 trillion in market cap in about two months. Growth-focused traders are flocking to NVIDIA for its unprecedented AI chip momentum, high margins, and dominant position in next-gen computing (read: ETFs to Bet On as NVIDIA Reclaims Market Cap Crown).
MSFT Vs. NVDA
Microsoft is leading the way this year, having gained 11.6% versus NVIDIA’s rise of 5.5%. Both stocks currently have a Zacks Rank #3 (Hold) and a Momentum Score of B, along with a solid Zacks Industry Rank in the top 37%.
Microsoft is trading at a P/E ratio of 35.28, slightly higher than NVDA’s P/E of 33.42. While Microsoft's valuation multiple is higher, its cash flow stability and growth trajectories warrant the premium. The software maker saw a positive earnings estimate revision of 3 cents for fiscal year (June 2025) over the past 30 days.
Microsoft has an average brokerage recommendation (ABR) of 1.28, made by 46 brokerage firms. Out of them, 37 are Strong Buy and five are Buy. Strong Buy and Buy, respectively, account for 80.43% and 10.87% of all recommendations. The average price target for Microsoft comes to $515.74, ranging from a low of $448.00 to a high of $626.00.
NVIDIA has a Growth Score of A, meaning that it is primed for strong growth. Analysts remain optimistic about the chipmaker’s growth prospects, citing strong demand for AI chips and strategic international partnerships.
The AI darling has an ABR of 1.33 made by 45 brokerage firms. Of these, 37 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 82.22% and 6.67% of all recommendations. The average price target for NVDA comes to $173.88, ranging from a low of $100.00 to a high of $220.00.
ETFs to Bet On
As Microsoft and NVIDIA are in a tough market cap battle and are poised to grow further, investors should include both stocks in their portfolios to capitalize on the trend (see: all the Technology ETFs here).
As such, Select Sector SPDR Technology ETF (XLK - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , and iShares Dow Jones US Technology ETF (IYW - Free Report) look like compelling choices. These funds allocate almost the same share in both companies.
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ETFs Poised to Win in the MSFT vs. NVDA Market Cap Battle
The battle for Wall Street’s top spot has intensified, with Microsoft (MSFT - Free Report) once again overtaking NVIDIA (NVDA - Free Report) to become the world’s most valuable public company. As of June 9, Microsoft’s market capitalization surged to approximately $3.5 trillion, narrowly eclipsing NVIDIA’s $3.47 trillion, reigniting a high-stakes rivalry that reflects deeper shifts in the tech and AI ecosystems (read: Why Big Tech Stocks Are Powering Market Gains Again).
A Clash of Titans
The tug-of-war is a showdown between two different kinds of tech leadership. Here’s a quick summary:
Microsoft, long a pillar of enterprise software and cloud infrastructure, has successfully transformed itself into a modern AI powerhouse. Its aggressive integration of OpenAI's models into its suite of products, from Microsoft 365 to Azure Copilot, has made artificial intelligence more accessible and enterprise-ready.
NVIDIA, the dominant player in AI hardware, remains the undisputed king of GPUs. Its chips power everything from large language models to autonomous vehicles and advanced gaming. NVIDIA’s market value skyrocketed over the past two years as demand for its AI chips exploded globally.
In a nutshell, NVIDIA may power the AI revolution with its cutting-edge chips, but Microsoft powers the ecosystem. Azure remains one of the world’s fastest-growing cloud platforms, while Microsoft 365 and Teams are now foundational to modern digital workflows.
Microsoft’s rally has been powered by its robust cloud growth, expanding AI integrations (via OpenAI), and enterprise dominance. The software maker has rallied about 30% since its April lows and added about $800???billion in market value. Investors backing Microsoft appreciate its diversified revenue streams, recurring enterprise income, and sustainable growth path tied to AI.
NVIDIA, on the other hand, is riding a historic chip demand cycle as it sells GPUs for AI workloads at breakneck speed. Since bottoming at just over $94 in early April, NVDA stock has soared nearly 50%, adding over $1 trillion in market cap in about two months. Growth-focused traders are flocking to NVIDIA for its unprecedented AI chip momentum, high margins, and dominant position in next-gen computing (read: ETFs to Bet On as NVIDIA Reclaims Market Cap Crown).
MSFT Vs. NVDA
Microsoft is leading the way this year, having gained 11.6% versus NVIDIA’s rise of 5.5%. Both stocks currently have a Zacks Rank #3 (Hold) and a Momentum Score of B, along with a solid Zacks Industry Rank in the top 37%.
Microsoft is trading at a P/E ratio of 35.28, slightly higher than NVDA’s P/E of 33.42. While Microsoft's valuation multiple is higher, its cash flow stability and growth trajectories warrant the premium. The software maker saw a positive earnings estimate revision of 3 cents for fiscal year (June 2025) over the past 30 days.
Microsoft has an average brokerage recommendation (ABR) of 1.28, made by 46 brokerage firms. Out of them, 37 are Strong Buy and five are Buy. Strong Buy and Buy, respectively, account for 80.43% and 10.87% of all recommendations. The average price target for Microsoft comes to $515.74, ranging from a low of $448.00 to a high of $626.00.
NVIDIA has a Growth Score of A, meaning that it is primed for strong growth. Analysts remain optimistic about the chipmaker’s growth prospects, citing strong demand for AI chips and strategic international partnerships.
The AI darling has an ABR of 1.33 made by 45 brokerage firms. Of these, 37 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 82.22% and 6.67% of all recommendations. The average price target for NVDA comes to $173.88, ranging from a low of $100.00 to a high of $220.00.
ETFs to Bet On
As Microsoft and NVIDIA are in a tough market cap battle and are poised to grow further, investors should include both stocks in their portfolios to capitalize on the trend (see: all the Technology ETFs here).
As such, Select Sector SPDR Technology ETF (XLK - Free Report) , MSCI Information Technology Index ETF (FTEC - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , and iShares Dow Jones US Technology ETF (IYW - Free Report) look like compelling choices. These funds allocate almost the same share in both companies.