In an impressive display of market dominance, Nvidia Corp. has experienced a staggering 46% surge in stock prices this year, adding about $560 billion to its market value. The rise in the stocks of Nvidia illustrates the expanding impact of artificial intelligence (AI) on global markets.
This remarkable growth has not only elevated Nvidia above Amazon.com Inc. in market value but also positioned it strikingly close to Alphabet, Google’s parent company.
Nvidia, renowned for its advanced AI accelerators, has become a favorite on Wall Street. Major firms like UBS Group AG and Mizuho Securities have increased their price targets for the tech giant.
As news of Nvidia’s remarkable market growth spread across the internet, diverse reactions emerged from people worldwide. Some observers speculate that if Nvidia continues to grow at this current pace, it could soon ascend to the top position in the market.
At this pace Nvidia will be number one at some point this year.
— Verbal (@RogerKint) February 12, 2024
This surge in Nvidia’s stock reflects the burgeoning demand for its H100 AI accelerators, which are crucial in powering AI tasks.
The company’s stock has become one of the most favored on Wall Street, with analysts boosting their 2024 revenue estimates by over 100% in the last 12 months.
Demand for Nvidia’s AI accelerators continues to exceed supply, and analysts consider the stock the best AI player in the market.
$nvda is more useful than both Microsoft and Apple currently. They’re next.
— ARTIF4CT (@ARTIF4CTT) February 12, 2024
Despite a slight dip of 0.2% on Tuesday, Nvidia closed at around $721.28, outperforming its big-tech counterparts.
This performance comes even as the Nasdaq 100 Index fell 1.6%, impacted by rising US consumer prices. Nvidia’s resilience amidst market fluctuations underscores its strong position in the AI sector.
However, some people seemed to complain that the stock value of Nvidia is overpriced and overvalued.
It’s way overpriced!
— Andrew Brown (@comput1212) February 12, 2024
Overvalued
— TeslaFUDKer 🍁⚡️ 𝕏𝕏𝕏 (@technoking_420) February 13, 2024
Nvidia’s ascent over Amazon in market value is a clear indicator of the increasing significance of AI in the tech industry. It also highlights the shift in market dynamics where companies specializing in AI and related technologies are gaining an edge over traditional tech giants.
Based in Santa Clara, California, Nvidia is not just thriving locally but is capturing global attention. As the top performer on both the S&P 500 and Nasdaq 100 indexes this year, Nvidia’s growth trajectory is set to redefine the landscape of the tech industry.
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