Prime Highlights:
- Nvidia stock closed at a record $154.31, up 4.3% in a day.
- The market value of the company rose to $3.77 trillion, outpacing Microsoft and Apple.
Key Facts:
- Nvidia becomes the world’s most valuable listed company.
- The jump came after Micron posted solid earnings, a major supplier of AI memory chips.
- Note: Market value is calculated based on cash and debt held by the company.
- Loop Capital raised its target price for Nvidia to $250, citing AI hardware dominance.
Key Background
Nvidia has cemented its dominance of the technology sector by hitting a record stock price of $154.31, up 4.3% on the day. The stock had briefly reached $154.45 in intraday trading, its all-time high. With this jump, Nvidia’s combined market capitalization reached a staggering $3.77 trillion, the most valuable publicly traded company, ahead of Microsoft and Apple.
This performance is particularly notable because it was achieved on a day when wider markets were little moved. The S&P 500 itself was flat and the Nasdaq only rose by around 0.3%. The leading rally in Nvidia stock is due in part to a mix of good sector signals combined with growing investor optimism in AI-related equities.
Among the major triggers was Micron’s earnings report, a leading supplier of high-bandwidth memory chips vital to AI technologies. Micron’s positive earnings report reassured investors of sustained demand for AI infrastructure, which is a direct advantage to Nvidia, the dominant producer of AI chips.
Looping in more fuel, Loop Capital increased Nvidia’s price target to $250. The analysts pointed to Nvidia’s all-but-complete stranglehold on the AI-chip market and predicted eye-watering future growth, even going so far as to wonder aloud if the firm would hit a $6 trillion valuation by 2028. The prediction relies on ramping investments in generative AI and emerging hyperscale data center demand.
In spite of headwinds such as U.S. export curbs that could run Nvidia approximately $8 billion in lost revenue to China, the firm remains resilient. Nvidia has diversified into AI robotics and cloud services, keeping it future-proof.
On the technical front, market analysts see firm bullish indicators, such as a “golden cross” on charts and consistent buying volume. Short-term pullbacks are on the cards as the stock may be overbought but its long-term trend is firmly bullish.
Nvidia’s ascension is not merely a rally of a stock but of the entire technological wave. With AI to continue revolutionizing the future, Nvidia finds itself squarely in the middle of this revolution.
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