Thanks to a spectacular increase in its share price over the last nine months, which has increased its valuation from $1 trillion to over $2 trillion, Nvidia is quickly catching up to Apple in terms of market value and establishing itself as the second most valuable business in the world.
With a market capitalization of roughly $2.38 trillion, Nvidia is now behind Apple by about $230 billion and Microsoft by about $645 billion. Wall Street reached record highs this year thanks in part to the semiconductor giant's strong expansion and 80% market share in the high-end AI chip segment. The
artificial intelligence, making it a major constituent of the S&P 500 index.
Industry experts claim that Nvidia's remarkable rally has been fueled by the speculative backing of long option purchasers and the strong fundamentals of the company's present business model. This spike in recent weeks has also helped Nvidia overtake Tesla as the most traded stock on Wall Street in terms of value.
Nvidia's rise has upended the ranking of the most valuable US corporations, overtaking Amazon, Alphabet, and Saudi Aramco, as Apple struggles with declining iPhone sales. Nvidia's stock appears to be nearing a peak despite its remarkable success; analysts have suggested a median target price that implies a possible decline from the closing price of $926 to $850 over the course of the next year. Analysts point out that Nvidia is still reasonably priced when compared to other "AI narrative" equities, and its
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