Nvidia Stock Soars: Experts Predict Further Growth

Nvidia Corp (NVDA) shares recently closed at $138, reflecting a 0.8% increase and boosting the company's market capitalization to over $3 trillion. However, analysts suggest that Nvidia's stock could continue to rise even higher in the coming years.

Expert Commentary: Ram Ahluwalia, CEO of Lumida Wealth Management, has shared an optimistic outlook regarding Nvidia, suggesting that the company could reach a valuation of $4 trillion in the future.

Ahluwalia stated, "There’s no question about it. The demand for GPU chips is strong, and you’re seeing early adopters starting to get some ROI,” during an interview with Yahoo Finance.

Another influential figure in the investment community, Tony Wang, a portfolio manager at T. Rowe Price, agrees with this positive sentiment.

Dan Niles, the founder of Niles Investment Management, emphasized the long-term potential of Nvidia, asserting, "You’ve got several more years of AI investment before you hit saturation or a more maturing AI landscape. You’ll see Nvidia’s revenues double over the next several years, and I think you’ll see the stock double over the next several years.”

Goldman Sachs also highlighted the growth prospects for Nvidia, noting the exponential demand for inference computing as model creators like OpenAI strive for higher throughput and lower latency. The firm believes Nvidia is strategically positioned to capitalize on this increasing demand and has set a price target of $150 for the stock.

Bofa Securities reaffirmed their confidence in Nvidia by maintaining a 'Buy' rating and raising their price target from $165 to $190.

The consensus among 38 analysts puts Nvidia's price target at $234.49, which reflects a strong belief in the company's future performance.

Why It Matters: Nvidia shares have experienced a remarkable increase of nearly 186.5% year-to-date, as reported by Benzinga Pro, with the company’s current market capitalization around $3.39 trillion.

Presently, Nvidia stands as one of the giants in the technology sector, with Apple being the only American company surpassing its market cap at approximately $3.57 trillion; even Apple's valuation is still under the prestigious $4 trillion mark.

Moreover, Nvidia's stock has surged over 233% in the past year, with its share price climbing from $41 to $138. In the same timeframe, related ETFs, such as the GraniteShares 2x Long NVDA Daily ETF and Direxion Daily NVDA Bull 2X Shares, have reported gains exceeding 440%.

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Nvidia, Stock, Growth