Nvidia Stock's Impressive Surge and Future Potential

Nvidia Corp (NVDA) shares recently closed up by 0.8% at a price of $138, pushing the company’s market capitalization to surpass $3 trillion. Many experts in the tech sector believe that the stock could continue to rise.

Expert Insight: According to Ram Ahluwalia, the CEO of Lumida Wealth Management, there is a strong case for Nvidia reaching a $4 trillion valuation in the future.

Ahluwalia expressed optimism regarding Nvidia’s prospects: “There’s no question about it. The demand for GPU chips is strong, and you’re seeing early adopters starting to get some ROI,” he stated in an interview.

Another optimistic voice is Tony Wang, a portfolio manager at T. Rowe Price. He echoes the confidence surrounding Nvidia's future.

Dan Niles, founder of Niles Investment Management, believes that Nvidia's revenue has the potential to double in the coming years. He commented, "You’ve got several more years of AI investment before you hit saturation or a more maturing AI landscape. You’ll see Nvidia’s revenues double over the next several years, and I think you’ll see the stock double over the next several years.”

Growth in Demand: Goldman Sachs also weighed in, stating that demand for Inference compute could grow significantly as companies like OpenAI develop solutions that require high throughput and low latency for models. They believe Nvidia is well-positioned to capitalize on this growing opportunity, setting a price target of $150 for its shares.

On the other hand, Bofa Securities reaffirmed their ‘Buy’ rating for Nvidia and raised their price target from $165 to $190.

Currently, market analysts maintain a consensus price target of $234.49 for Nvidia, based on feedback from 38 analysts.

Significant Growth Over Time: Nvidia stock has surged impressively by nearly 186.5% year-to-date, now valued at approximately $3.39 trillion. As it stands, Nvidia is the second-largest U.S. company by market capitalization, only trailing behind Apple, which has a valuation of about $3.57 trillion.

Over the past year, Nvidia's stock has increased more than 233%, with its share price moving from $41 to $138. Meanwhile, exchange-traded funds (ETFs) that track Nvidia, like the GraniteShares 2x Long NVDA Daily ETF and Direxion Daily NVDA Bull 2X Shares, have delivered remarkable returns of at least 440% during the same timeframe.

Nvidia, Stock, Growth