In just 70 trading days, Nvidia added $750 billion to its market capitalization. The high-tech company, specializing in graphics chips and artificial intelligence (AI), is poised to overtake Amazon.
Nvidia soars on the stock market
In just 10 weeks, Nvidia achieved a remarkable feat, surpassing the historical performance of most companies: a spectacular $750 billion increase in its stock market value.
At the last reading taken on October 31, 2023, the chip manufacturer had a market capitalization of $950 billion. Today, this figure stands at almost 1.7 trillion, marking a staggering 79% increase in just 70 days.
This dizzying growth translates into an impressive daily average of $10.7 billion in increases in the stock market. At this breakneck pace, Nvidia could very soon surpass Amazon and establish itself as the 5th most valuable public company in the world.
Overflowing optimism for AI
How to explain such a stock market surge? The answer is two letters: AI. Indeed, in recent years, Nvidia has established itself as the world leader in the field of chips dedicated to artificial intelligence. With the recent rise of language models like ChatGPT, the demand for its GPUs has continued to grow exponentially.
Goldman Sachs, among others, displays overwhelming optimism. The investment bank recently revised its price target for Nvidia upwards to $800, counting on a major boost to the company’s profits thanks to AI. It therefore forecasts a 22% increase in profits by 2025.
It is difficult in these conditions not to imagine the tech company continuing to push its stock market limits. At the rate of enthusiasm for AI, new records could quickly be broken, despite already very high valuation multiples.
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