Nvidia's Remarkable Stock Surge: Insights from Market Experts

Nvidia Corp (NASDAQ: NVDA) witnessed a notable increase in its stock price, closing 0.8% higher at $138 on Friday, which elevated its market capitalization to over $3 trillion. Market analysts are optimistic that the stock has the potential to climb even higher.

Expert Commentary: Ram Ahluwalia, CEO of Lumida Wealth Management, expressed his positive outlook, suggesting that Nvidia could reach a valuation of $4 trillion. He 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.

Portfolio manager Tony Wang from T. Rowe Price also shares this positive sentiment. He echoes the views of Dan Niles, founder of Niles Investment Management, who stated, "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.”

According to Goldman Sachs, there is tremendous potential for growth in inference computing, especially as companies like OpenAI pursue advancements in high throughput and low latency. They believe that Nvidia is well-positioned to capture this emerging market. Goldman Sachs currently has a price target of $150 for Nvidia's stock.

On a similar note, BofA Securities reaffirmed their positive stance on Nvidia, maintaining a 'Buy' rating and raising their price target for the stock from $165 to $190.

Currently, Nvidia holds a consensus price target of $234.49, as indicated by the evaluations of 38 analysts. This reflects strong market confidence in the company.

Why It Matters: Since the start of the year, Nvidia's stock price has surged nearly 186.5%, pushing its market cap to about $3.39 trillion. Presently, it stands as the second-most valuable American company, coming in just behind Apple, which has a market cap of $3.57 trillion and, notably, sits below the $4 trillion mark.

Over the past year, Nvidia's stock has risen an impressive 233%, with its share price jumping from $41 to $138. Exchange-traded funds (ETFs) that focus on Nvidia, such as the GraniteShares 2x Long NVDA Daily ETF (NVDL) and Direxion Daily NVDA Bull 2X Shares (NVDU), have even surpassed this growth, boasting returns of at least 440% in the same time frame.

Nvidia, Stock, Investment