In just nine months, Nvidia’s market capitalization has soared from $1 trillion to over $1.5 trillion, overtaking major companies like Amazon and Google-parent Alphabet.
Currently trailing Apple by approximately $230 billion and Microsoft by about $645 billion, Nvidia’s market capitalization is around $2.38 trillion. The semiconductor giant’s dominance in the high-end AI chip market, controlling 80%, has fueled its substantial growth, contributing to Wall Street reaching record highs this year. The relentless rally in Nvidia shares, up 95%.
According to industry experts, the robust fundamentals of Nvidia’s current business model and speculative support from long option buyers have driven its impressive rally. In recent weeks, this surge has also propelled Nvidia to replace Tesla as the most traded stock by value on Wall Street.
However, analysts note that Nvidia remains comparatively affordable among ‘AI narrative’ stocks, and its future trajectory depends on its ability to meet or exceed high expectations.
