(Bloomberg) – Nvidia Corp.'s shares rose to an all-time high on Wednesday, with the AI chip leader expanding his progress that solidified its position as one of the most valuable companies in the world.
The stock rose 3.8% to $153.46, reaching its highest ever high that has existed since January. This record is just the latest milestone for the company. This is 63% off the lows in April.
Nvidia's recent revenues were the Bulls' latest catalyst as the report showed strong growth and pointed out more strength despite the impact of restrictions on China's advanced semiconductor sales. Prints from Microsoft Corp., Meta Platforms Inc., Alphabet Inc. and Amazon.com Inc. – each supply chain data compiled by Bloomberg makes up more than 40% of NVIDIA's revenue – and further highlights how its biggest customers continue to build AI infrastructure aggressively.
“My confidence in Nvidia's growth is higher than it was a few months ago, and AI Arms Race seems to last until 2025 and possibly 2026.” “The momentum has clearly been reestablished, and Nvidia's moat has only expanded and deepened, and its position has only been strengthened.”
At Nvidia's shareholders meeting on Wednesday, CEO Jensen Huang reassured investors that demand remains strong. He reiterated his view that the computer industry is only at the start of a major AI infrastructure upgrade.
Little known just a few years ago, Nvidia appeared as Wall Street's most important inventory by becoming a poster child for everything. More than 14% profit on stocks this year was triggered by a surge of nearly 240% in 2023, following a rallies of more than 170% in 2024.
Even this strength continues to screen it as attractive next to its history by several metrics. NVIDIA trades at 31x expected 12-month revenue, below the 10-year average and not far from 27x the Nasdaq 100 index. The PEG ratio of stocks – a measure of valuation related to growth – is about 0.9, which is much lower among the seven grand ones.
The combination of high growth and reasonable multiples is the main reason Wall Street is optimistic about its outlook. Almost 90% of analysts tracked by Bloomberg recommend buying stocks, but 13% below the analyst average price target.
Nevertheless, Nvidia remains unowned by market experts compared to other major high-tech peers, an additional sign that there is a possibility of more purchases in the coming weeks. Nvidia is owned by 74% of Long's only funds, according to Bank of America data. This will put you behind Amazon, Apple and Microsoft. It is the most owned at 91%.
“I'm bullish this year and the next year, but like everyone else, I don't know what's going to happen after that,” Smith said. “Stocks don't look expensive, but one of the world's largest companies may have some limitations. Ultimately, Nvidia's growth period depends on the time it takes to increase its client investments.
(Updated shareholder meetings in the fifth paragraph.)
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