Nvidia Stock Soars to Record High, But Can AI Boom Keep Momentum Going?

Nvidia stock has reached a record high of $164.92, with a market cap of over $4 trillion. The company's AI chip demand remains strong, with its Blackwell platform witnessing adoption from cloud players like CoreWeave and partnerships with companies like Dell and HP. Analysts are bullish on the stock, with Goldman Sachs initiating coverage with a Buy rating and a $185 price target. The next catalyst is Nvidia's Q2 FY26 earnings report on August 27, with analysts expecting $1.00 per share in earnings and $45.62 billion in revenue.

Nvidia Corporation (NVDA) has reached a historic milestone, with its stock closing at $164.92 and a market capitalization of over $4 trillion, marking it the first U.S. company to achieve this valuation in a single day [1]. The stock's performance has been driven by a 0.75% increase, reaching $164.10 per share, which propelled its market cap to $4.004 trillion [1]. This impressive growth comes amidst a broader market rebound following the April "Liberation Day" tariff impacts.

Nvidia's market performance outpaced the S&P 500 Index, which climbed by 0.27%, and the Nasdaq Composite Index, which edged up by 0.09% [1]. The company's valuation is unprecedented, with a $4 trillion market cap representing approximately 3.6% of the global GDP [1]. For comparison, Cisco Systems' peak valuation during the 2000 dot-com bubble was $550 billion, representing just 1.6% of the global GDP at the time [1].

Peter Boockvar, Chief Investment Officer at Bleakley Financial Group, noted that Nvidia's growth is extraordinary compared to historical data, but he emphasized that his analysis does not express a bullish or bearish stance on the stock [1]. Over the past three months, Nvidia's stock has surged more than 50%, reflecting the explosive demand for AI computing power [1].

Goldman Sachs initiated coverage on Nvidia with a Buy rating and a $185 price target, citing the company's strength in AI and product innovation [2]. The investment bank highlighted Nvidia's position as the industry standard in accelerated computing and its attractive valuation [2]. Analysts at Goldman Sachs believe that Nvidia's product leadership, broadening customer base, early signs of AI monetization, and attractive valuation position it to outperform compared to other companies in its coverage universe [2].

Nvidia's AI chip demand remains strong, with its Blackwell platform witnessing adoption from cloud players like CoreWeave and partnerships with companies like Dell Technologies and HP [3]. The next catalyst for Nvidia is its Q2 FY26 earnings report on August 27, with analysts expecting $1.00 per share in earnings and $45.62 billion in revenue [3].

References:
[1] https://www.ainvest.com/news/nvidia-shatters-records-4-trillion-market-cap-ai-surge-2507/
[2] https://www.investing.com/news/analyst-ratings/goldman-sachs-initiates-coverage-on-nvidia-stock-with-buy-rating-93CH-4129356
[3] https://www.gurufocus.com/news/2968964/nvda-goldman-doubles-down-on-nvidia-as-it-hits-4-trillion-milestone