Nvidia shares rose 0.8% on Wall Street this Friday, which has allowed the chip maker to surpass Apple as the most valuable company in the worldafter reaching a market capitalization of 3.53 trillion dollars, above the 3.52 trillion of the apple firm, according to ‘Reuters’ records.
This is not the first time the company has reached the top with its valuation, as In June of this year it overtook Microsoft, which held the first position at that timeand since then there have been alternations with the entry of Apple as well.
The company has already had almost two stellar years on the stock market thanks to its commitment to artificial intelligence (AI), and the forecasts for the future invite optimism, since The company launched Blackwell, its next-generation AI chip, months agoand at the moment the demand is, in the words of CEO Jensen Huang, “crazy.”
Based on this domain of AI, with a market share that is currently around 80%, analysts consider that Nvidia can still rise nearly 40% in the stock marketas the analysts of Bank of America (BofA) this week by raising its price target to $190 per share from the previous $165.
“More and more companies are adopting artificial intelligence in their daily tasks and Demand for Nvidia chips remains strong. Certainly is in an optimal point and as long as we avoid a major economic downturn in the United States, there is a sense that companies will continue to invest heavily in AI capabilities, creating a healthy tailwind for Nvidia,” he says. Russ Mouldchief investment officer at AJ Bell.
For its part, Antonio Ernesto Di Giacomosenior market analyst at XS.com, recalls that the Taiwanese giant TSMC, one of Nvidia’s large clients“expects its revenue from AI server processors to triple this year, reinforcing the strength of this industry’s growth trend and the value of Nvidia’s stock.”
“Meanwhile, tech giants like Microsoft have significantly increased their chip orders from Nvidia, a clear indicator of their confidence in Nvidia to lead the development of artificial intelligence infrastructure. Demand for specialized AI chips continues to rise and is expected to related infrastructure investment will increase tenfold by 2027, positioning Nvidia as a key supplier in this space. This level of demand suggests that the company will continue to be essential in building the technological ecosystem of the future“he concludes.
