Analysts believe the company will be worth much more
Yesterday, May 30, as expected , Nvidia joined the elite club of US companies with a market value of $1 trillion.
Nvidia’s share price has tripled in less than eight months, reflecting a surge in interest in artificial intelligence after the rapid development of generative AI. Nvidia has gained about 200% since October, well ahead of any other member of the S&P 500. This rally has boosted its valuation relative to its peers, but some analysts believe the company’s stock should be worth even more.
At the close of trading, the company’s market value was $992 billion, but the rally could continue today. Just four other US companies are currently worth over $1 trillion — Apple, Alphabet, Microsoft, and Amazon.
Nvidia, called “the most important company on the planet”
“We view Nvidia as the most important company on the planet in a rapidly changing era that will be underscored by greater AI capabilities,” said Angelo Zino, an analyst at CFRA Research.
The latest spike in the stock price came after the release of a earnings forecast report that outperformed Wall Street’s average estimate by more than 50%. Today, some analysts value the company at $1.6 trillion, on par with Alphabet.
“While the company’s valuation looks high at the moment, we believe Nvidia has great revenue potential as its AI GPU adoption remains at the very beginning of its journey,” said Qingay Chang, senior analyst at Summit Insights. group.
