Nvidia Corp. (NVDA), the poster child of artificial intelligence technology, continues its relentless upward trajectory. The Jensen Huang-led company has become a shining beacon in the market, defying swings and showcasing the immense potential of AI. This year alone, Nvidia has emerged as the second best-performing stock in the S&P 500, trailing only utility company Vistra Corp. (VST). The stock has already soared over 240% in 2023, followed by an impressive 168% gain in 2024. This remarkable performance has propelled Nvidia from the third most valuable company to overtaking Microsoft Corp. (MSFT) and solidifying its position as the second most valuable company globally. On Tuesday, the company’s stock closed at $132.89, marking a 4.05% increase. This consistent surge stands in stark contrast to 2022, when the stock experienced a significant decline of over 50%. However, the tide has turned, and AI’s growing influence has lifted all boats involved in the technology. Nvidia’s success can be attributed to several factors, including its first-mover advantage, cutting-edge technology, comprehensive AI solutions, and a strong management team. While skeptics often raise concerns about the massive investments required to maintain its lead in the AI race and the potential for AI bubbles to burst, Nvidia has defied these predictions by consistently executing its plans and surpassing expectations.
To reach Apple’s current market cap of $3.429 trillion, Nvidia, with a current market capitalization of $3.260 trillion, needs to add $6.8 to its per-share market price. This doesn’t seem like an insurmountable hurdle, considering the company’s $5.17 increase on Tuesday alone. With Nvidia’s stock currently up in premarket trading on Wednesday and Apple’s stock down, the possibility of Nvidia ending the day as the most valuable company cannot be ruled out.
The current market sentiment is likely to be influenced by speeches from Federal Reserve officials and the minutes from the September rate-setting meeting, where the central bank announced the first rate cut in the current cycle. While the future is uncertain, Nvidia’s impressive performance and the ever-expanding potential of AI make it an intriguing player to watch in the world of technology and finance.
