Nvidia Stock Surges 15.68% Year-to-Date, Nears Apple's Market Cap

Nvidia's stock price reached a new historical high on Tuesday, marking a 15.68% increase year-to-date. The company is now within reach of Apple's record market capitalization of 3.915 trillion dollars, with its stock closing at 160 dollars. To surpass this record, Nvidia's stock price needs to exceed 160.46 dollars. Furthermore, if the stock price climbs to 163.93 dollars, Nvidia will become the first company in history to achieve a market capitalization of 4 trillion dollars.

The surge in Nvidia's stock price is partly attributed to the easing of concerns surrounding U.S. policy restrictions. On Tuesday, other U.S. semiconductor manufacturers also saw their stock prices rise, with AMD increasing by 2.24%, Intel by 7.2%, and Qualcomm by 0.9%.

On Monday, a prominent U.S. investment bank released a new report, raising its forecast for Nvidia's data center sales for the fiscal years 2027 and 2028 by 5% and 11%, respectively. This adjustment is based on the strong demand for independent AI, which is expected to provide Nvidia with more expansion opportunities. The report also highlighted that the demand for sovereign AI, typically developed by national governments, is higher than anticipated. By 2028, the AI data center market is projected to reach 563 billion dollars, surpassing the previous estimate of 500 billion dollars. This growth is expected to benefit Nvidia, as the company is involved in nearly all sovereign transactions.

Nvidia's stock price has been on an upward trajectory since late April, driven by market expectations of a sustained increase in AI demand, which is anticipated to boost the company's earnings. Although the CEO had previously warned that U.S. restrictions on chip exports to China could negatively impact investors, these concerns appear to have been mitigated. Institutional investors remain optimistic about Nvidia's prospects, citing the company's leading position in the AI sector, which is expected to continue driving profitability and business expansion.

Analysts have also expressed a positive outlook on Nvidia's future performance. One analyst has increased the target price for Nvidia's stock to 190 dollars per share. Additionally, 34 analysts have given Nvidia a "buy" rating, with an average target price of 175.97 dollars, suggesting that the stock price could rise by an additional 10% in the coming months.