Nvidia Shatters Records: AI Demand Fuels $3.5 Trillion Valuation Boom
1min read Nvidia's stock price has surged to a new record, driven by strong demand for AI and advanced semiconductors. Despite concerns of a GPU market bubble, investors remain optimistic about the company's future performance. Nvidia's CEO emphasized strengthening its competitive edge in AI processors.
The company's stock gained as much as 2.67%, reaching $141.324 per share, boosting its market capitalization to $3.5 trillion. Analysts highlight Nvidia's rising influence as enterprises increasingly integrate AI applications, solidifying its market position. Partnerships with major firms like Microsoft and ServiceNow underline this trend.
Vivek Arya, an analyst, recently increased Nvidia's target stock price to $190, anticipating a 37% rise from its recent close at $138. He cites Nvidia's free cash flow margin at over 45%, far exceeding the 23% to 25% average of other leading US tech firms. Arya forecasts Nvidia's free cash flow could exceed $200 billion, rivaling companies like Apple.
Furthermore, Nvidia is set to expand its Blackwell GB200 chip production, with significant growth anticipated. Industry reports indicate Microsoft has significantly increased its order, making it the largest GB200 customer. Production capacity is expected to rise, with shipment volumes projected to grow substantially in the coming quarters.
Nvidia's stock has risen 189.5% this year, reflecting continued strong market confidence. Analysts at major firms remain optimistic about its earnings potential and have adjusted their valuations accordingly. The AI revolution promises exponential growth, with Nvidia uniquely positioned to capitalize on this momentum.
