The world’s most valuable company, Nvidia, continued to soar on Thursday, with its shares opening up more than 3% to nearly $140 per share, adding another $100 billion to its market capitalization. Nvidia’s current value of $3.44 trillion solidified its position as the largest company by market value, surpassing Microsoft and Apple. The company’s success has propelled stock indices to new all-time highs, with the S&P 500 reaching a peak of 5,499.99. Analysts are predicting that Nvidia, along with other big tech companies, will continue to benefit from the growing interest in generative artificial intelligence.
While some investors are excited about Nvidia’s potential to reach a market capitalization of $4 trillion, others remain cautious about its valuation. The stock currently trades at 79 times trailing-12-month revenue and 42 times trailing-12-month earnings, which is significantly higher than the S&P median. Analysts believe that Nvidia’s earnings will continue to rise in the coming quarters, but investors may need to have faith in the company’s future performance.
Nvidia’s success in the AI semiconductor chip market has been impressive, with the company dominating the industry and its graphics processing units becoming highly sought after. CEO Jensen Huang, who co-founded Nvidia, has seen his fortune rise dramatically as the company’s stock continues to rally. After going public in 1999, Nvidia has transformed from a video game company to a leader in the AI boom of the 2020s.
Analysts have raised their price targets for Nvidia, with some predicting that the company could reach a market capitalization of $4.9 trillion within the next 12 months. Despite its rapid growth, some investors are wary of Nvidia’s high valuation and the need for continued earnings growth to justify its price.
Overall, Nvidia’s stock has seen significant gains in recent months, with its value continuing to rise. The company’s success in the AI market, along with its innovative products and leadership, have positioned it as a key player in the tech industry. Investors will be closely watching Nvidia’s performance in the coming months to see if it can maintain its current momentum.
Article Source
https://www.forbes.com/sites/dereksaul/2024/06/20/nvidia-worlds-most-valuable-company-rallies-another-3-as-4-trillion-valuation-in-sight/