Nvidia(NVDA, Financial) ended at an unprecedented high on Monday, bringing it within close distance of Apple (AAPL,Financial) as the most valuable company in the world. The economic value of Nvidia is at $3.39 trillion and thus, it is behind Apple's $3.52 trillion only, but ahead of Microsoft's $3.12 trillion. This jump attests to solid investors' belief in Nvidia's present and future AI chip products.
Earlier this year, Nividia briefly surpassed Microsoft (MSFT, Financial) to become the world's most valuable company. Nevertheless, the tech giants have since repositioned themselves thoroughly, and their market caps bounced around with more fluctuation for several more months.
Indeed, Wall Street has placed Nvidia among critical contenders for the position of the market leader for next-gen AI tech, manufacturers of which include Alphabet (GOOGL, Financial), Amazon (AMZN, Financial), and Microsoft. TD Cowen analysts indicate that the investment environment in the AI space is competitive and calls for more Australia's needs to invest continuously, which investment is critical in preparing for potential obstacles in the burgeoning field.
Nvidia expects further sales growth even if it experiences a production slowdown of the Blackwell chips it is expected to release. Sales of other chips for artificial intelligence deployments are expected to remain steady at least. TD Cowen has placed Nvidia as their “Top Pick” for investment, and the firm reaffirms its price target of $165.
Before the reporting season starts emotions are also rather high: both Apple and Microsoft have increased their movements which led to S&P 500 record. Nvidia along with companies like Apple and Microsoft jointly hold appreciable weight at the S&P 500.
As we look ahead, Nvidia has forecasted revenue surge to almost $125.8 billion thanks to continued investments in AI data centres, according to LSEG data. Still, there is some wariness regarding the further stable growth of AI spending.
