NVIDIA Corporation’s remarkable ascent in the stock market shows no signs of slowing down, with shares surging over 200% in the past year. Analysts now predict that the semiconductor giant could achieve a staggering $5 trillion market valuation in the near future, driven by its dominant position in the AI and semiconductor sectors.
Rosenblatt Securities analyst Hans Mosesmann has raised his price target on NVIDIA to a Wall Street high of $200, up from $140 previously. This bullish outlook comes on the heels of NVIDIA’s recent 10-for-1 stock split, which has further fueled investor enthusiasm. On Tuesday, NVIDIA’s shares rose by as much as 2.7%, reaching new intraday highs as Mosesmann’s optimistic forecast resonated with market participants.
Based in Santa Clara, California, NVIDIA has solidified its market leadership with high-demand products crucial for powering data centers handling complex AI computations. Mosesmann, who has maintained a buy rating on NVIDIA since initiating coverage in 2017, emphasized the significance of NVIDIA’s software offerings alongside its hardware prowess.
“In addition to hardware, the software that complements these advancements will play a pivotal role in NVIDIA’s growth trajectory,” Mosesmann explained in a client note. He anticipates substantial growth in the software segment over the next decade, contributing significantly to NVIDIA’s overall sales mix and enhancing its valuation potential.
The analyst community has shown overwhelming support for NVIDIA, with 64 buy ratings, seven holds, and only one sell rating among analysts tracked by Bloomberg. This widespread optimism underscores the confidence in NVIDIA’s strategic direction and its ability to capitalize on evolving technological landscapes.
In 2024 alone, NVIDIA’s shares have soared by 165%, adding over $2 trillion to its market capitalization. This surge positions NVIDIA as a formidable contender to surpass Microsoft and Apple, currently the world’s most valuable companies, in terms of market capitalization.
Looking forward, NVIDIA’s ambitious roadmap includes advancements in AI hardware, upcoming launches of new product lines like the Vera Rubin architecture and RTX 50xx series, and an accelerated chip development cycle. These initiatives are expected to sustain NVIDIA’s growth trajectory and potentially propel its market valuation towards the $5 trillion mark.
For a comprehensive analysis of NVIDIA’s market performance and future prospects, visit Fortune.