Nvidia shares rise to fresh record high; last up 1.3%

Nvidia shares rise to fresh record high; last up 1.3%

Nvidia (NVDA) stock has reached a new record high, climbing 1.3% in premarket trading on Thursday. The chipmaker became the first publicly traded company to reach a $4 trillion market value, surpassing tech giants such as Microsoft (MSFT) and Apple (AAPL) [1].

The stock closed Wednesday's session at a record high, up nearly 2% for the day, and its market cap ended slightly under the $4 trillion mark at the close. The gains come as Nvidia continues to capitalize on the generative AI hype, with its stock price up around 21% year to date and 24% over the past 12 months [1].

Nvidia's chips, modified graphics cards, and CUDA software platform are designed to both train and run AI programs, giving it a strategic advantage over competitors such as AMD (AMD) and Intel (INTC). Tech behemoths like Amazon (AMZN), Google (GOOG), Meta (META), Microsoft, Tesla (TSLA), and others are investing heavily in Nvidia's hardware to build out data centers for cloud-based AI offerings and internal AI models [1].

The stock has experienced volatility this year, with a $600 million hit to its market cap in January due to the DeepSeek R-1 model. However, fears that Nvidia's data center chips were falling out of fashion and concerns about the AI industry moving from training to inferencing have proven unfounded. Nvidia's chips remain among the best for training AI models, and the industry has shown that inferencing benefits from more powerful AI processors [1].

Nvidia has also benefited from the growth of sovereign AI, or AI data centers, and has managed to shake off U.S. bans on the sales of its chips to China, despite the financial impact. The company is expected to supply hundreds of thousands of chips to countries including Saudi Arabia and those across Europe [1].

Investors are eagerly awaiting Nvidia's earnings disclosure, scheduled for August 27, 2025. The company is predicted to post an EPS of $0.99, indicating a 45.59% growth compared to the equivalent quarter last year, with revenue expected to be $45.69 billion, a 52.1% increase from the prior year [2].

Nvidia currently holds a Zacks Rank of #3 (Hold), with a Forward P/E ratio of 37.72 and a PEG ratio of 1.34. The Semiconductor - General industry, which includes Nvidia, has a Zacks Industry Rank of 90, placing it in the top 37% of all 250+ industries [2].

References:
[1] https://sg.finance.yahoo.com/news/nvidia-stock-eyes-more-gains-after-chipmaker-becomes-first-company-to-reach-4-trillion-market-value-141526893.html
[2] https://www.nasdaq.com/articles/why-nvidia-nvda-outpaced-stock-market-today