Nvidia Hits Record High, Reclaims World's Most Valuable Company Title Amid AI Optimism

Nvidia hits record high as analyst predicts AI 'Golden Wave'

June 25 (Reuters) - Nvidia's (NVDA.O), opens new tab stock hit a record high on Wednesday, and the chipmaker reclaimed the crown as the world's most valuable company after an analyst said the chipmaker was set to ride a "Golden Wave" of artificial intelligence. Shares of the Santa Clara, California-based company rose over 4% to a record high of $154.10. The rise sent Nvidia's stock market value to $3.76 trillion, overtaking Microsoft (MSFT.O), opens new tab, which was last valued at $3.65 trillion following a 0.2% increase in its stock. Fueling Nvidia's latest rally, Loop Capital lifted its price target for the designer of high-end AI processors to $250 from $175, while maintaining its "buy" rating. "Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand," Loop Capital analyst Ananda Baruah wrote in a client note. Nvidia's latest gains reflect the U.S. stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology. Nvidia recently traded at about 30 times analysts' expected earnings for the next 12 months, below its average of about 40 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains. Nvidia, Microsoft and Apple (AAPL.O), opens new tab have traded places several times as the world's most valuable company over the past year, with Microsoft leading recently after overtaking Nvidia in early June. Apple's stock rose 0.4% on Wednesday, putting its value at $3.0 trillion. Nvidia has now rebounded over 60% from its closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations the White House will reach trade deals to soften the tariffs. The S&P 500 technology sector index (.SPLRCT), opens new tab was last up 0.9% at an all-time high. It has now gained almost 6% in 2025. Reporting by Noel Randewich; Editing by Leslie Adler Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business Noel Randewich Thomson Reuters San Francisco correspondent covering the stock market with a focus on Big Tech, semiconductors and other Silicon Valley companies

Nvidia shares hit record high on renewed AI optimism

Nvidia shares hit a record high on Wednesday, marking a turnaround for the chip company following a rocky start to the year marked by US-China tensions over critical artificial intelligence technology. The US chip designer's shares rose 4 per cent, surpassing an all-time high intraday price set in January, as it vies with Microsoft and Apple to be the world's most valuable company. The rally came as Nvidia chief executive Jensen Huang gave its annual shareholder meeting on Wednesday a bullish outlook on the company's ability to continue its explosive growth over the next decade, citing the "multitrillion-dollar opportunity" of AI and robotics. "We are at the beginning of a decade-long AI infrastructure build-out: demand for sovereign AI is growing around the world," Huang told shareholders. Nvidia has rebuilt the optimism around its stock, which was dented earlier this year when a breakthrough by China's DeepSeek led to concerns about the durability of Nvidia's dominant position in the global AI infrastructure market. That event wiped nearly $600bn from the company's market value. Its stock was also knocked after US President Donald Trump introduced new restrictions on Nvidia's China-specific H20 AI chips in his trade conflict with China this year. The move has closed off the company's access to the Chinese market, which the company says could reach $50bn in the coming years. Nvidia is considering a redesign to its Blackwell chips to continue to serve the China market while complying with the export controls. Daniel Newman, chief executive of the Futurum Group, said the rally is "about the ability of Nvidia to move as fast as it's moving". "Even though cloud providers like Amazon and Microsoft want to build their own vertically integrated AI infrastructure, right now there's no situation where the best technology stack isn't Nvidia," he said. Threats from competitors such as AMD to take market share for advanced AI chips did not matter "if it's a $400bn market in the next four years", he added. Nvidia has committed to an annual release of new AI chips and is positioning itself for the launch of Vera Rubin, which will follow its current- generation Blackwell systems that have seen massive demand, including from sovereign infrastructure deals with Saudi Arabia and the UAE. "Nvidia is riding a general chip wave," said G Dan Hutcheson, vice-president at TechInsights, with markets now recovering from the impact of Trump's "liberation day" tariffs and the DeepSeek breakthrough. "Nvidia was oversold because of both."

Nvidia shares head for record close as Wall Street shrugs off China concerns

Jensen Huang, CEO of Nvidia, holds a motherboard as he speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. Nvidia shares rose nearly 3% on Wednesday and headed for a record close for the first time since January, as investors gain confidence that the company's leadership in artificial intelligence won't be dampened by Chinese export controls. The stock rose as high as $153.13 during the day, matching its prior intraday high. It's currently trading at $151.92, which would put it past its closing high of $149.43 on Jan. 6. Nvidia is now worth $3.7 trillion, making it the largest company in the world by market cap, slightly beating out Microsoft, one of its main customers. Apple is third at about $3 trillion. While Nvidia remains the clear leader in graphics processing units (GPUs) that are being used to build large language models and run AI workloads, the strength of this year's rally is surprising given that the company has said it's locked out of the world's second-biggest economy.

Nvidia heads for 5-day win streak as it hits record highs

Jensen Huang, CEO of Nvidia, speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. Nvidia stock rose for a fifth consecutive day Friday as the chipmaker hovered near fresh highs and investors shook off China concerns. The rise in shares has helped the artificial intelligence chipmaking giant regain its seat as the most valuable company. The stock is up 66% since hitting its 52-week low in early April. Its market capitalization last stood at about $3.8 trillion, putting it ahead of Microsoft and Apple. Wedbush Securities analyst Dan Ives estimated that both Nvidia and Microsoft will hit the $4 trillion market cap club this summer, and reach $5 trillion over the next 18 months.

Nvidia's comeback sparks a rally in Asian chipmakers

Chip stocks in Asia rose Thursday, after artificial intelligence darling Nvidia's shares hit a record close to reclaim the title of the world's most valuable company. Shares of South Korea's SK Hynix, which supplies memory chips to Nvidia, gained 3.53%. TSMC, which manufactures Nvidia's high-performance graphics processing units that help power large language models, saw a smaller rise of 0.47%. Taiwan's Hon Hai Precision Industry -- also known as Foxconn -- was 0.77% higher. It has a strategic partnership with Nvidia to build "AI factories," that incorporate Nvidia's chips in a whole range of applications, including electric vehicles and LLMs. Several Japanese chip stocks not directly linked to Nvidia saw sharp gains. Semiconductor testing equipment supplier Advantest gained 3.93% to hit a record high. Japanese technology conglomerate Softbank, which owns a stake in British chip designer Arm, saw shares jump 4.38%. Tokyo Electron and Lasertec climbed 2.13% and 1.57%, respectively. Renesas Electron added 2.22%. Nvidia shares climbed over 4% on Wednesday stateside, closing at a new all-time high for the first time since January. The stock ended the session at $154.31, topping its previous record close of $149.43 from Jan. 6. With a market value of $3.77 trillion, Nvidia is now the most valuable company in the world, edging past Microsoft. The rally reflects growing investor confidence in the chipmaker's dominance in artificial intelligence, in spite of export restrictions to China. In April, the Trump administration implemented new regulations that blocked sales of Nvidia's H20 AI chip, which had been designed to comply with earlier restrictions. Nvidia said last month the move would result in an $8 billion hit to its sales, as well as a $4.5 billion inventory write-down.

Nvidia shares retake AI leadership role. Wall Street is bullish going forward

Wall Street investors believe that Nvidia 's next rally to even higher highs is only a matter of time. The chipmaker ended last week by hitting fresh all-time highs three days in a row. But this bullish showing stands in contrast to the doubt that has hovered around the stock for much of the year. NVDA YTD mountain NVDA YTD chart Nvidia -- alongside the other major semiconductor names -- had a rough start to 2025, as fears around China export controls weighed heavily on sentiment. For most of the past year, shares have traded within a flat range without any kind of solid move higher. "The sentiment had definitely turned on AI semis in general, and Nvidia is kind of that poster boy child as far as the AI semi trade is concerned," said CFRA analyst Angelo Zino in an interview with CNBC. "Sometimes with these big megacap tech stocks and names that have had incredible runs, you do have to digest those gains." Another reason for Nvidia's recent lag may be that the stock has been a victim of its own success, said Gene Munster, co-founder of Deepwater Asset Management. He added that investors have been concerned that Nvidia's "remarkable growth story" over the past few years wasn't sustainable in the long term. "Despite all the good things that are going on with AI, it's still hard for Nvidia investors to sleep well at night," he told CNBC. But Nvidia's performance took a turn last week. On Wednesday, investors sent the stock up 4% to a new all-time closing record. Friday's session saw a gain of nearly 2% -- marking the stock's fifth consecutive positive session. Nvidia's chart pattern also lends credence to claims that the stock could continue to rally from here. Nvidia recently formed what's known as a golden cross -- when its 50-day moving average crosses above its 200-day moving average -- implying that a long-term bull market may be emerging. Jordan Klein, an analyst at Mizuho, attributed Nvidia's rally last week to investors closing the gap between the stock and its competitors. Going forward, he expects another substantial spike when Nvidia releases its next earnings report, around the end of August. Increasing demand trends and the rollout of Nvidia's new Blackwell chip both point to higher revisions from the company. "In late August they'll guide their October revenue, which I think could be notably higher than expected," Klein told CNBC. "It's driven by Blackwell volumes ramping and those really start to scale up in July, and then more in August, probably into September." Zino added that while a lot of the hype around Blackwell's launch is already likely priced into the stock, there's still more room for shares to go higher. "You're at a point in time for Nvidia where now they're going to scale up Blackwell, and now they're going to get some of that margin expansion and some of those benefits here over the next couple of quarters," he said. "And I think that's a big reason why the stock is working as well." Like Klein and Zino, Munster is also bullish on Nvidia's forward trajectory. He said Nvidia's valuation still looks compelling, even at these new all-time highs. "It's probably the most attractive large-cap tech company on a price-to-growth basis," he said. While some investors have pointed to hyperscalers building their own custom chips as a potential headwind for Nvidia, Munster said this is an unlikely theme due to the cost of building chips in house. Munster said he remains confident about Nvidia's outlook since he believes the industry is still early in its buildout of AI. As evidence, he pointed to the multimillion dollar bonuses Meta has offered to poach OpenAI employees as the Facebook owner tries to supercharge its development efforts.

Analyst Dan Ives says it will be the summer of $4 trillion market caps for surging tech giants

Nvidia and Microsoft will be the first to join the exclusive $4 trillion market cap club as the appetite for artificial intelligence skyrockets, according to Dan Ives, Wedbush Securities global head of technology research. The two stocks have had an incredible bounce back this quarter after a rough start to the year, as fears around China export controls and global tariff issues have taken a step back in investors' minds. Continued AI innovation and supersized capital expenditure commitments into AI infrastructure have boosted sentiment propelling tech stocks to new highs. "The poster childs for the AI Revolution are led by Nvidia and Microsoft as both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks on the Street," Ives wrote in a note to clients. "We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club ... as this tech bull market is still early being led by the AI Revolution." Nvidia last week rallied for five straight days and hit a fresh record, putting its monthly gain at roughly 16% and quarter-to-date gain at about 44.5%. Microsoft saw a consecutive four-day rally last week, bringing its month- and quarter-to-date gains to about 8% and 32.5%, respectively. Nvidia and Microsoft currently have market caps of about $3.83 trillion and $3.69 trillion, respectively. Ives is particularly bullish on Nvidia and its impact on the AI ecosystem. He estimated that for every $1 spent on Nvidia, there is between an $8 to $10 multiplier across the rest of the tech ecosystem, which includes a range of hyperscalers as well as those working on cybersecurity, software, semiconductors, internet, and autonomous and robotics technologies. "There is one company in the world that is the foundation for the AI Revolution and that is Nvidia with the Godfather of AI Jensen having the best perch and vantage point to discuss overall enterprise AI demand and the appetite for Nvidia's AI chips looking forward," Ives said. While Ives considers Nvidia "the only game in town from an AI chip perspective," he highlighted stalwart hyperscalers led by Microsoft, but also now Google and Amazon as Google Cloud Platform and Amazon Web Services find momentum. Advanced Micro Devices is another chip player joining this party, according to Ives. "The impact of the AI cycle on consumer Internet will be massive and it will start with the cloud service divisions, Amazon's AWS and Alphabet's GCP. AWS and GCP acquire AI-capable chips, build AI-capable service offerings, and sell those services into their respective installed bases," he said, noting that Microsoft, Amazon, and Google have identified software-driven AI use cases that are being accelerated across many verticals. "It's all about the use cases exploding which is driving this tech transformation being led by software and chips into the rest of 2025 and beyond and thus speaks to our tech bull and AI Revolution thesis," Ives said.

Nvidia stock nears record close as tech stocks soar

Not too long ago, Nvidia looked like it had lost momentum. After peaking in January, the AI chipmaker's stock slid hard -- dragged down by U.S. trade restrictions, intensifying competition from China, and a broader tech pullback. At one point in April, shares had fallen nearly 40% from their highs, bottoming out just above $94. Now? Nvidia shares are doing better than ever. On Wednesday, Nvidia stock rose more than 3%, extending a rally that has sent shares soaring over 12% in the past month and over 10% year-to-date. If the company closes at or near current levels -- around $152.56 -- it would mark a record, topping January's $149.43 all-time closing high. The rebound has been so dramatic that Nvidia briefly dethroned Microsoft this month to become the world's most valuable public company. The inflection point came in late May when the company posted a blowout first-quarter earnings report that beat expectations across the board, even after factoring in a $2.5 billion hit from U.S. export bans to China. CEO Jensen Huang has reaffirmed that the global appetite for AI chips is still expanding, despite geopolitical roadblocks. And demand has been bolstered by international partnerships, including deals to sell hundreds of thousands of GPUs to Saudi Arabia and the UAE. Investors have listened. Loop Capital this week raised its price target to $250, a Wall Street high. "It may seem fantastic that Nvidia's fundamentals can continue to amplify from current levels," Loop analyst Ananda Baruah wrote in a note, "but we remind folks: Nvidia remains essentially a monopoly for critical tech, and it has pricing (and margin) power." The firm projects the AI chip market could reach $2 trillion by 2028 and sees Nvidia's valuation potentially climbing from $3.6 trillion today to $6 trillion. Not even recent reports that Huang is selling shares -- part of a prearranged plan to offload more than $800 million worth of Nvidia stock -- have rattled investors. The broader tech trade is also working in Nvidia's favor. Bank of America says tech stock inflows last week hit their highest level in a year, helping lift the entire chip sector. Intel, AMD, and Broadcom all notched 3%-plus gains on Tuesday, while the Nasdaq 100 and Nasdaq Composite both closed at multimonth highs. Of course, risks remain. Micron's earnings -- due after the bell on Wednesday -- could move the market, especially if the memory supplier shows signs of stress. Nvidia relies on high-bandwidth memory to power its top-end GPUs, and any sign of a supply squeeze or pricing dip could weigh on the stock. And while demand has remained strong, there are still questions about whether Big Tech's breakneck AI investment can keep up with investor expectations. The real test, however, may come in August, when Nvidia reports second-quarter earnings. Analysts are bracing for a clearer look at how China's export losses and continuing competitive threats are weighing on margins -- even as the U.S. and its allies work to stem China's semiconductor ambitions. In mid-June, Taiwan barred key companies from selling advanced chips and manufacturing tools to Huawei, SMIC, and other Chinese firms, tightening a chokehold already reinforced by U.S. export bans. But the pressure cuts both ways: Chinese companies have been accelerating the development of homegrown AI chips, threatening Nvidia's long-term dominance in one of its largest markets. Still, few companies have been able to defy gravity quite like Nvidia. In three months, the company has bounced from a 52-week low to the brink of a record close. For now, at least, Wall Street seems to believe that the AI chip king is still firmly in control -- and that its comeback is far from finished.

Nvidia, Microsoft are racing to hit a $4 trillion market cap

The AI boom has minted billionaires, moved markets, and rewritten roadmaps. Now, it's fueling the most expensive corporate race in history -- a two-company sprint to $4 trillion in market value, where the finish line could be just weeks away. In one corner: Microsoft, the cloud-and-Copilot juggernaut that helped put generative AI on every boardroom agenda. In the other: Nvidia, the chipmaker turned kingmaker whose silicon powers nearly every AI model worth its token count. Between them, more than $7.5 trillion in market cap -- and a shared obsession with reaching the next trillion. And as they inch closer, the strategic showdown playing out on Wall Street is nothing short of electrifying. Nvidia briefly seized the crown earlier this month, overtaking Microsoft to become the most valuable public company in the world. It didn't last. Within days, Microsoft leapfrogged it to reclaim the top spot. Then Nvidia rallied again, reclaiming the lead this week. The two have been trading leads like sprinters in the final stretch -- only this track is lined with hyperscale data centers and investor euphoria. According to Wedbush Securities' Dan Ives, "the race to $4 trillion has begun," as he titled a recent client note where he called both companies the poster children for the AI revolution. He predicted that Microsoft and Nvidia will each cross the $4 trillion mark this summer -- and that $5 trillion will be the next frontier. "This tech bull market is still early," Ives wrote, and AI is its driving engine. "Both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks on the Street." On that point, there's little debate. Loop Capital this week raised its price target on Nvidia to $250, a Wall Street high. "It may seem fantastic that Nvidia's fundamentals can continue to amplify from current levels," Loop analyst Ananda Baruah wrote in a note, "but we remind folks: Nvidia remains essentially a monopoly for critical tech, and it has pricing (and margin) power." The firm projects the AI chip market could reach $2 trillion by 2028 and sees Nvidia's valuation potentially climbing from $3.6 trillion today to $6 trillion. But Nvidia's power isn't just about silicon. For every $1 spent on Nvidia's chips, Wedbush has estimated that there's an $8-$10 ripple across the tech stack. That means that cloud infrastructure, AI developer tools, cybersecurity layers, and yes, Microsoft, all benefit. If Nvidia is building the highways, Microsoft is selling the toll passes. Microsoft's power lies in what comes after the chips: the software, the services, and the widespread enterprise integrations. Its Azure cloud business has become a launchpad for AI adoption, and its OpenAI partnership (although recently in flux) has cemented its role as the go-to platform for generative tools at scale. From copilots in Word and Excel to Azure-hosted GPT services, Microsoft has made AI feel less like magic and more like productivity. Wedbush recently estimated that for every $100 a company spends on Azure, it's spending an additional $50 on AI tools layered into the cloud stack -- up from $40. If the trend continues, Ives believes that AI alone could add $25 billion to Microsoft's top line by fiscal 2026. Still, the climb gets steeper from here. Export restrictions could dampen Nvidia's growth in China. Microsoft faces intensifying competition in AI services from Amazon and Google, both of whom are leaning hard into their own AI-cloud combos. And valuation itself becomes a heavier lift at these levels -- every $100 billion added is a moonshot. For all their momentum, neither company is immune to the gravitational pull of trillion-dollar expectations -- or geopolitical risk. Nvidia, in particular, faces U.S. export restrictions on advanced chips destined for China, a market that accounted for roughly 20-25% of its data center revenue last year. Any policy tightening could squeeze Nvidia's international growth pipeline just as competitors such as AMD and a growing wave of custom silicon startups (many backed by big cloud players themselves) are trying to elbow into the AI hardware market. Even chip-design giant Broadcom -- which edged up to a trillion-dollar valuation -- is muscling in on the opportunity. Microsoft's path, while more diversified, is no cakewalk, either. The company's valuation relies heavily on growing Azure and Copilot growth, and Microsoft faces mounting pressure from Amazon Web Services and Google Cloud, both of which have ramped up their AI-as-a-service offerings. Amazon is leaning into homegrown chips and open-source models and expanding its Bedrock platform to court the very same Fortune 500 customers, while Google continues to pitch its Gemini stack as a serious contender for enterprise deployments. That puts Microsoft in the tricky position of being both a platform provider and a competitive threat to its partners -- and in AI, those lines blur fast. The company may have been a first mover in enterprise AI, but it's now one of several heavyweights vying for dominance. At this altitude, adding another $100 billion in market cap isn't just a good quarter. It's a jackpot. Nvidia would need to deliver flawless execution in production, demand, and supply chain to sustain its trajectory. Microsoft would need to not only maintain its enterprise momentum but prove that AI integration isn't just hype layered onto Excel, but a sticky and durable new growth driver. Wall Street has a short attention span. Growth at these levels is less about narrative and more about delivering quarter after quarter after quarter. But for now, Wall Street seems happy to keep betting on both horses. Ives recently launched a ETF that tracks 30 companies he believes are core to the AI revolution, ranging from hyperscalers and semis to robotics and cybersecurity players. At the center: Microsoft and Nvidia, locked in a high-stakes valuation tango with trillions on the line. As summer unfolds, the $4 trillion threshold won't just be a benchmark -- it'll be a story: hardware versus software, nimble chipmaker versus entrenched cloud titan, Jensen Huang versus Satya Nadella (with every Wall Street guru putting legs on their theses). So who will touch $4 trillion first? It's a coin flip -- as edges shift daily. But one thing's clear: This duel will define the next era of megacap tech dominance. Call it a race or a reshuffling of power in Silicon Valley. But make no mistake: This is history being written in real-time -- and in trillions.

Nvidia breakout puts $4 trillion market value within reach

After the emergence of China's DeepSeek sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence infrastructure were set to slow, Nvidia shares have rallied back to a record. Its biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. A 66% gain from an April low has pushed its market capitalization to $3.8 trillion, overtaking Microsoft Corp. at $3.70 trillion to again become the world's most valuable company. Nvidia shares rose as much as 1.3% in early trading Friday. With a broadening customer base clamoring for Nvidia's latest AI accelerators and competitors still distant, bulls are betting the chipmaker's shares have plenty of room to run. "We believe that Nvidia is truly uniquely positioned, and that it will sustain its position over the next decade-plus," said Aziz Hamzaogullari, chief investment officer at Loomis, Sayles & Co. and founder of the firm's growth equity strategies team. Hamzaogullari isn't alone. This week, Loop Capital analyst Ananda Baruah raised Nvidia's price target to $250 from $175, a level that would equate to a roughly $6 trillion market value. Baruah, who has a buy rating on the stock, expects annual AI spending from various types of customers to rise to nearly $2 trillion by 2028. "While it may seem fantastic that Nvidia fundamentals can continue to amplify from current levels, we remind folks that Nvidia remains essentially a monopoly for critical tech, and that it has pricing (and margin) power," Baruah wrote in a research note on June 25. The bullish sentiment behind Nvidia and other makers of AI gear is a stark reversal from earlier in the year when the emergence of advanced chatbots like DeepSeek, developed relatively cheaply in China, sparked fears that Nvidia's customers would cut spending. Instead, US tech giants are plowing even more money into computing infrastructure. Read More: Nvidia Attempts to Breakout of Range Relative to the S&P 500 Microsoft, Meta, Amazon.com Inc. and Alphabet Inc. are projected to put about $350 billion into capital expenditures in their upcoming fiscal years, up from $310 billion in the current year, according to the average of analyst estimates compiled by Bloomberg. Those companies account for more than 40% of Nvidia's revenue. Of course, there are still plenty of risks that could derail Nvidia's rally. The company relies on Taiwan Semiconductor Manufacturing Co. for the production of its chips, exposing Nvidia to US President Donald Trump's trade policies, which can change on a whim. Trump's 90-day pause on the stiffest tariffs is set to end on July 9. At the same time, there's no guarantee Nvidia's biggest customers won't change their tune on spending in coming years. Many of them are developing their own chips to avoid the steep prices commanded by Nvidia. "The valuation depends on the persistence of growth, and we already know that Nvidia's largest customers are trying to figure out ways to be more efficient with their spending, not just with Nvidia, but also offloading to their own silicon," said Dan Davidowitz, chief investment officer at Polen Capital Management. "You have to have very robust assumptions to get comfortable with the valuation, and we just don't have a good enough view on what that demand looks like." Nvidia shares are priced at 32 times earnings projected over the next 12 months, compared with 22 times for the S&P 500. The stock's valuation doesn't bother Loomis Sayles's Hamzaogullari, who remains a firm believer that AI will transform society and is convinced that Nvidia will remain a key winner as productivity gains from the technology expand. "That doesn't mean it will be steady Eddie all the time, that there won't be disruptions in spending, but this is a secular structural change, and Nvidia remains one of the biggest beneficiaries," Hamzaogullari said. "The stock still looks attractive given that backdrop."

Nvidia breakout puts $4 trillion market value within reach

Two years after Nvidia Corp. made history by becoming the first chipmaker to achieve a $1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach $4 trillion. After the emergence of China's DeepSeek sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence infrastructure were set to slow, Nvidia shares have rallied back to a record. Its biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. A 67% gain from an April low has pushed its market capitalization to $3.8 trillion, overtaking Microsoft Corp. at $3.7 trillion to again become the world's most valuable company. Nvidia shares rose 1.8% Friday to close at another record high. With a broadening customer base clamoring for Nvidia's latest AI accelerators and competitors still distant, bulls are betting the chipmaker's shares have plenty of room to run. "We believe that Nvidia is truly uniquely positioned, and that it will sustain its position over the next decade-plus," said Aziz Hamzaogullari, founder, chief investment officer and portfolio manager of the growth equity strategies team at Loomis, Sayles & Co. Hamzaogullari isn't alone. This week, Loop Capital analyst Ananda Baruah raised Nvidia's price target to $250 from $175, a level that would equate to a roughly $6 trillion market value. Baruah, who has a buy rating on the stock, expects annual AI spending from various types of customers to rise to nearly $2 trillion by 2028. "While it may seem fantastic that Nvidia fundamentals can continue to amplify from current levels, we remind folks that Nvidia remains essentially a monopoly for critical tech, and that it has pricing (and margin) power," Baruah wrote in a research note on June 25. The bullish sentiment behind Nvidia and other makers of AI gear is a stark reversal from earlier in the year when the emergence of advanced chatbots like DeepSeek, developed relatively cheaply in China, sparked fears that Nvidia's customers would cut spending. Instead, US tech giants are plowing even more money into computing infrastructure. Microsoft, Meta, Amazon.com Inc. and Alphabet Inc. are projected to put about $350 billion into capital expenditures in their upcoming fiscal years, up from $310 billion in the current year, according to the average of analyst estimates compiled by Bloomberg. Those companies account for more than 40% of Nvidia's revenue. Of course, there are still plenty of risks that could derail Nvidia's rally. The company relies on Taiwan Semiconductor Manufacturing Co. for the production of its chips, exposing Nvidia to US President Donald Trump's trade policies, which can change on a whim. Trump's 90-day pause on the stiffest tariffs is set to end on July 9. At the same time, there's no guarantee Nvidia's biggest customers won't change their tune on spending in coming years. Many of them are developing their own chips to avoid the steep prices commanded by Nvidia. "The valuation depends on the persistence of growth, and we already know that Nvidia's largest customers are trying to figure out ways to be more efficient with their spending, not just with Nvidia, but also offloading to their own silicon," said Dan Davidowitz, chief investment officer at Polen Capital Management. "You have to have very robust assumptions to get comfortable with the valuation, and we just don't have a good enough view on what that demand looks like." Nvidia shares are priced at 32 times earnings projected over the next 12 months, compared with 22 times for the S&P 500. The stock's valuation doesn't bother Loomis Sayles's Hamzaogullari, who remains a firm believer that AI will transform society and is convinced that Nvidia will remain a key winner as productivity gains from the technology expand. "That doesn't mean it will be steady Eddie all the time, that there won't be disruptions in spending, but this is a secular structural change, and Nvidia remains one of the biggest beneficiaries," Hamzaogullari said. "The stock still looks attractive given that backdrop." 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.

Nvidia stock price hits fresh record high as analyst sees 'golden wave' of Gen AI adoption

Shares of Nvidia Corp (Nasdaq: NVDA) reached a new record high on Thursday in premarket trading. As of the time of writing, the stock had peaked at $156.99 before slightly sliding to $156.68. The uptick follows Wednesday's all-time high closing price of $154.31, which rose to $154.59 in after-hours trading. Nvidia has been a de facto representative of AI investment in the market. It reached a high of $153.13 in early January, but its shares soon tumbled alongside China's success with AI company DeepSeek and uncertainty around tariffs. DeepSeek used Nvidia chips to build its AI systems despite the United States banning their sale to China. The stock hit a low of $86.62 on April 7, just five days after President Trump's "Liberation Day," on which he announced a series of tariffs worldwide.

NVIDIA Reaches $3.77 Trillion Market Cap - the Most Valuable Company in AI Sector

NVIDIA reached a notable milestone by briefly becoming the most valuable company in the world, with a market capitalization of about $3.77 trillion. Its stock price hit $154 per share, edging out Microsoft's $3.65 trillion and placing Apple third at around $3 trillion. This jump in value highlights NVIDIA's central role in the expanding artificial intelligence sector. At the company's latest annual shareholders meeting, CEO Jensen Huang explained that the development of AI infrastructure is still in its early stages, and the market for AI-related technologies will continue to grow for years. He pointed to robotics and AI model training as key factors driving future growth. Following Huang's comments, NVIDIA's stock rose more than 4% in a single trading session, reflecting renewed investor confidence. NVIDIA's market value has grown significantly despite previous challenges related to trade tensions and tariff discussions earlier this year. Since April, the company's valuation has increased by roughly 63%, adding about $1.5 trillion in market capitalization. Analysts describe the AI market as entering a new phase of rapid expansion, with NVIDIA well positioned to benefit. The company's chips, including the H100 and GB200, are becoming the standard for training large AI models in data centers and cloud platforms. Partnerships with tech giants like Amazon, Meta, Microsoft, and Google further reinforce NVIDIA's dominant position in AI infrastructure. While NVIDIA faces increasing competition and geopolitical pressures, the overall trend indicates sustained growth in AI technologies, with NVIDIA leading the way. Source: Yahoo

NVIDIA hits new all-time high $3.77 trillion market cap, CEO plans to sell $800 million stock

As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. NVIDIA has just reached yet another record-high market cap reaching $3.77 trillion, with its stock price hitting $154.31 at the close of trading, up from its previous closing high of $149.43 earlier this year on January 6, 2025. With the new NVIDIA market cap of $3.77 trillion, it passes both Microsoft and Apple at ease, with Microsoft enjoying a $3.66 trillion market cap, and Apple in third position at $3.01 trillion. NVIDIA has been riding the AI wave for a few years now, and without its AI GPUs, I don't think we'd be where we are with AI (generative AI, and more) and neither would NVIDIA's financials. The company has faced constantly changing US export restrictions, stopping its AI chips from entering China, and seeing the company hurt with $8 billion lost in sales to China, writing off over $4.5 billion in AI chip inventory. This has led NVIDIA to stop counting any sales from China, with NVIDIA CEO Jensen Huang saying last month that "the $50 billion China market is effectively closed to US industry". NVIDIA has its AI GPUs inside of AI servers across the industry and across the world, and has been dominant with somewhere over 90% of the AI GPU market, with AMD's new Instinct AI accelerators that compete at these levels unveiled recently, and will be on the market later this year and into 2026. NVIDIA has its Blackwell B200 and Blackwell Ultra B300 chips on the market, with its next-gen Rubin AI GPUs with HBM4 memory to be unleashed later this year and hitting the market in 2026. If NVIDIA's financials are strong now, we should only expect an upward trajectory next year, with some analysts expecting a whopping $6 trillion valuation in the not too distant future. NVIDIA CEO Jensen Huang plans to sell $800 million of stock, something that Jensen disclosed in a new 10b5-1 plan last month, with $800M of his stock to be sold before the end of the year.

Analyst says NVIDIA is speeding into an eye-watering $6 trillion valuation

Analysts: NVIDIA's market cap has a LONG way to go, expects $6 trillion market cap in the future as the Gen AI demand is 'SO much LARGER' than we think. As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. NVIDIA has just reached another all-time record high market cap of $3.77 trillion, with analysts predicting a $6 trillion market cap in the near future. Loop Capital has raised its price target for NVIDIA to a whopping $250 per share, which would see the company with a mind-boggling $6 trillion valuation. In a new report, Loop Capital analyst Ananda Baruah said according to Loop's research: "we are entering the next 'Golden Wave' of Gen AI adoption" and that NVIDIA has positioned itself "at the front-end of another material leg of stronger-than-anticipated demand". Furthermore, Loop Capital supply chain analyst John Donovan says that hyperscale and AI factory (Sovereign, Neocloud, and Enterprise) Gen AI and AI accelerator compute spending ALONE could increase to around $ 2 trillion by 2028 using current compute economics. The analyst firm also suggests a huge $6 trillion market cap for NVIDIA in the near future. The analyst firm notes that NVIDIA's next-gen Blackwell AI chips are expected to enter mass production volume by Q4 2025, and that reasoning models are proving far more token-intensive than previously realized, while inferencing and AI factory demand are "ramping up quickly". Baruah's price target of $250 is based on a 31x multiple of NVIDIA's FY 2028 EPS estimates of $8.

Nvidia's Climb Puts Stock on Track to Set New High

The bank expects the AI market to reach $1 trillion by 2030, with Nvidia a "key beneficiary." Nvidia (NVDA) shares climbed in Wednesday afternoon trading, putting them on pace for a record close and helping the chipmaker reclaim the title of most valuable company by market value. The chipmaker's stock was up close to 3% in recent trading near $152, which would be its highest closing price ever, if the stock can sustain that level. It rose as high as $153 earlier in the session, just short of an intraday high of $153.13 set in January. The gains pushed Nvidia's market capitalization to a whopping $3.71 trillion, surpassing Microsoft's (MSFT) at $3.65 trillion. Bank of America analysts told clients Tuesday they believe Nvidia "remains the undisputed leader in performance" among semiconductor firms as the AI market accelerates. The bank expects the AI market to reach $1 trillion by 2030, with Nvidia a "key beneficiary." One facet of Nvidia's market opportunity is in growing sovereign AI demand, with BofA expecting "every major country" to invest in sovereign AI, "generating high-tech employment, and serving critical healthcare, defense, industrial, financial and cyber needs." Earlier this month, CEO Jensen Huang announced multiple sovereign AI partnerships during a European tour. Oppenheimer analysts recently estimated the global sovereign AI market could reach $1.5 trillion, including $120 billion in Europe.

Nvidia Stock Climbs to All-Time High Wednesday

The chipmaker's stock was up close to 4% in recent trading near $154, topping an intraday high of $153.13 set in January. It would be the stock's highest closing price ever, if the stock can sustain that level. The gains pushed Nvidia's market capitalization to a whopping $3.75 trillion, surpassing Microsoft's (MSFT) at $3.65 trillion. Nvidia CEO Jensen Huang reportedly said at the company's annual shareholder meeting Wednesday that he believes there are "many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity." Bank of America analysts told clients Tuesday they believe Nvidia "remains the undisputed leader in performance" among semiconductor firms as the AI market accelerates. The bank expects the AI market to reach $1 trillion by 2030, with Nvidia a "key beneficiary." One facet of Nvidia's market opportunity is in growing sovereign AI demand, with BofA expecting "every major country" to invest in sovereign AI, "generating high-tech employment, and serving critical healthcare, defense, industrial, financial and cyber needs." Earlier this month, Huang announced multiple sovereign AI partnerships during a European tour. Oppenheimer analysts recently estimated the global sovereign AI market could reach $1.5 trillion, including $120 billion in Europe.

Nvidia stock jumps nearly 3% -- breaking January high -- can NVDA keep climbing after Micron earnings today?

Nvidia stock surged nearly 3% to a record high of $152.97, breaking its previous January peak. Investors are excited as AI demand continues to skyrocket, and all eyes are on Micron's earnings tonight, which could shape Nvidia's next big move. Analysts are bullish, with fresh price targets and sky-high expectations for Nvidia's role in the future of AI data centers. With Nvidia leading the AI chip space and climbing technical charts, the momentum looks strong -- but can it last?Nvidia stock hits record high -- Will it stay there? Nvidia (NVDA) stock opened at a new all-time high on Wednesday, pushing past its previous January record. But what's really fueling this surge -- and can it keep the momentum going? Nvidia stock surged more than 2.6% in early Wednesday trading, crossing above its previous record close of $149.43 set back in January. It opened at $149.28 and climbed to a fresh intraday high of $152.97, a clear signal of investor confidence. What's behind this bullish run? Several key catalysts are converging at once. Also Read: US stock market today: Nasdaq jumps, S&P 500 nears record, and Dow climbs -- Nvidia surges as Fed cut hopes Middle East truce One major driver behind Nvidia's rally today is anticipation around Micron's (MU) quarterly earnings, expected after the market closes. Why does that matter for Nvidia? Micron produces high-bandwidth memory (HBM) chips -- crucial components used in Nvidia's advanced AI accelerators. If Micron posts strong results and outlook, it could be a green light for ongoing AI hardware demand, signaling robust growth for the entire AI supply chain, including Nvidia. Investors are watching closely. A solid Micron report could reinforce the belief that Nvidia's explosive AI growth story still has legs. Yes -- and they're becoming more aggressive in their projections. Loop Capital just raised its Nvidia price target from $175 to $250, pointing to what it calls a "$2 trillion AI data center opportunity" by 2028. That level of market expansion could propel Nvidia's market cap toward a staggering $6 trillion, according to analysts. With Nvidia already dominating the AI chip space, analysts believe it's positioned to benefit more than any other tech giant from this next wave of digital infrastructure spending. From a charting perspective, technical analysts are also turning heads. Nvidia is breaking out of a 25-week consolidation pattern, and it's quickly approaching a key buy point at $153.13. If it breaks and holds above that level, it could set off a new leg higher -- potentially inviting even more momentum-driven investors to join in. Beyond chips, Nvidia's DGX Cloud service is becoming a powerful growth engine. It enables enterprises to run complex AI workloads through cloud-based Nvidia infrastructure -- a service that's gaining popularity in sectors like healthcare, finance, and manufacturing. This cloud push, combined with Nvidia's unmatched lead in AI GPUs, is turning the company into a full-stack AI powerhouse, not just a chipmaker. Yes -- despite the hype, a few key risks remain: The biggest near-term event is Micron's earnings report, which could set the tone for Nvidia and the broader semiconductor sector. A strong beat could confirm AI-related demand remains white-hot. A miss, however, might trigger sector-wide pullbacks. Also, keep an eye on Nvidia's price movement around the $153.13 breakout level. A strong close above that point could unlock a new bullish chapter. Nvidia is back in record territory, powered by unmatched dominance in AI, bullish analyst projections, and strong technical signals. If Micron delivers tonight -- and macro headwinds remain quiet -- Nvidia could be on the verge of another breakout. But in a high-valuation, high-expectation environment, even this AI titan needs to keep proving it can deliver. For now, though, Wall Street is clearly betting that Nvidia's AI engine is just getting started. Q1: Why is Nvidia stock at a record high today? Nvidia stock jumped on strong AI demand and hopes for a positive Micron earnings report. Q2: Can Nvidia stock keep rising after Micron's earnings? Yes, if Micron shows strong AI-related growth, it could push Nvidia even higher.

Nvidia reclaims the crown as world's most valuable company with $3.77 trillion market cap -- can the AI king keep its throne?

Nvidia becomes the world's most valuable company again as market cap crosses $3.77 trillion: Nvidia has once again taken the top spot as the world's most valuable company, beating both Microsoft and Apple, thanks to its massive gains driven by artificial intelligence. On June 26, 2025, Nvidia's market capitalization surged to $3.77 trillion after its shares closed at $155.02. This makes it the most valuable publicly traded company on the planet. What makes this milestone even more remarkable is how far Nvidia has come. In 2000, just a year after it went public, the company's market value was around $2.4 billion. By 2003, it had only grown to about $3.7 billion. Fast forward to today, and that number has exploded by over 1,00,000%, driven by Nvidia's dominant role in AI chips, data centers, and cloud computing. The main driver of Nvidia's rise has been its unmatched position in the AI chip market. Its graphics processing units (GPUs) have become the gold standard for powering artificial intelligence across industries. From training large language models to running AI in robotics, Nvidia's technology is everywhere. Also Read: US stock market futures rise as S&P 500 nears record high on Fed rate cut hopes and China trade progress; Dow, Nasdaq rise too as Nike, Nvidia, Palantir surge One of the biggest boosts came from its Blackwell AI chip platform, which powers everything from cloud data centers to generative AI tools. According to a CNBC report, Nvidia has already booked all of Wistron's server manufacturing capacity in Taiwan through 2026 -- leaving competitors struggling to catch up. That means Nvidia is not just a leader -- it's locked in at the front, with supply lines that guarantee dominance over the next two years. Nvidia's stock performance in 2025 has been staggering. Wall Street is watching closely. Loop Capital recently raised its price target to $250, saying Nvidia could be the first $6 trillion company in history if demand continues at this pace. Even more interesting -- despite these gains, Nvidia still has room to grow, according to analysts, especially as AI adoption spreads to robotics, self-driving cars, healthcare, and edge computing. Nvidia's future growth potential remains strong. Why? Because its reach is expanding fast. And with Nvidia securing exclusive production from key manufacturers, it's not just leading in technology -- it's dominating the entire supply chain. Looking ahead, Nvidia is more than just a chipmaker. It's becoming the backbone of the AI revolution. As more industries -- from finance to defense -- adopt AI, the demand for Nvidia's products will only rise. Some analysts believe Nvidia's control over both technology and manufacturing makes it one of the most defensible companies in tech. And unlike many tech booms of the past, this surge is backed by real demand, real profits, and global adoption. With its current momentum, and a strong pipeline of new innovations like the Blackwell chips, Nvidia could stay at the top for a long time. From a small player in graphics cards to the world's most valuable company, Nvidia's journey is nothing short of historic. Its rise reflects the growing power of AI and how central it has become to everything from research to entertainment. And as Nvidia keeps innovating, securing supply, and entering new markets, its story might just be getting started. Q1: Why did Nvidia become the most valuable company in the world? Because of booming demand for its AI chips and growing dominance in cloud data centers. Q2: What is Nvidia's current market cap as of June 2025? Nvidia's market cap reached $3.77 trillion on June 26, 2025.

Nvidia share price: Nvidia stocks jump to record high, AI chip giant becomes more valuable than Microsoft, Apple

Nvidia share price touched record as market valuation crossed $3.7 trillion. The AI giant is more valuable than Microsoft, and Apple.Nvidia surged to a fresh record amid continued artificial intelligence bullishness even as US Stock market indexes finished mixed on Wednesday. The broad-based S&P 500 was flat at 6,092.16, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 19,973.55. The Dow Jones Industrial Average finished down 0.3 per cent at 42,982.43. Nvidia share price shot up 4.3 per cent to $154.31 giving it a market valuation of around $3.76 trillion -- more valuable than Microsoft, Apple and other tech giants. The rise came as CEO Jensen Huang presented the company's latest technologies at Nvidia's annual meeting, AFP reported. Among other companies, FedEx fell 3.3 per cent after the shipping company did not provide a full-year forecast, citing uncertainty about the global trade outlook and tariffs. Tesla dropped 3.8 per cent after the company's car sales sank again in Europe last month, the latest poor result from Elon Musk's company in the region. General Mills dropped 5.1 per cent on disappointment over the company's forecast. The food giant expects a drop of 10 to 15 per cent in operating profit. But large banks had a good day with JPMorgan Chase and Citigroup winning one percent or more as the Federal Reserve proposed easing capital rule requirements. The mixed session followed two strong days for equities after conditions in the Middle East stabilized on Monday and Tuesday, with Iran and Israel agreeing to a ceasefire. "Investors are sort of catching their breath, since we had a very strong move on Monday and Tuesday," said Sam Stovall, chief investment officer at CFRA Research. Stovall also noted that markets are approaching new all-time highs and "usually it takes a couple of attempts" before breaking through. Q1. Which are top three indexes of US Stock Market? A1. Top three indexes of US Stock Market are S&P 500, Nasdaq, Dow Jones. Q2. What is share price of Nvidia? A2. Nvidia share price shot up 4.3 percent to $154.31.

Nvidia hits record high as analyst predicts AI 'Golden Wave'

Nvidia's latest gains reflect the US stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology. Nvidia recently traded at about 30 times analysts' expected earnings for the next 12 months, below its average of about 40 over the past five years, according to LSEG data. Nvidia's stock hit a record high on Wednesday, and the chipmaker reclaimed the crown as the world's most valuable company after an analyst said the chipmaker was set to ride a "Golden Wave" of artificial intelligence. Shares of the Santa Clara, California-based company rose over 4% to a record high of $154.10. The rise sent Nvidia's stock market value to $3.76 trillion, overtaking Microsoft, which was last valued at $3.65 trillion following a 0.2% increase in its stock. Fueling Nvidia's latest rally, Loop Capital lifted its price target for the designer of high-end AI processors to $250 from $175, while maintaining its "buy" rating. "Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand," Loop Capital analyst Ananda Baruah wrote in a client note. Nvidia's latest gains reflect the US stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology. Nvidia recently traded at about 30 times analysts' expected earnings for the next 12 months, below its average of about 40 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains. Nvidia, Microsoft and Apple have traded places several times as the world's most valuable company over the past year, with Microsoft leading recently after overtaking Nvidia in early June. Apple's stock rose 0.4% on Wednesday, putting its value at $3.0 trillion. Nvidia has now rebounded over 60% from its closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations the White House will reach trade deals to soften the tariffs. The S&P 500 technology sector index was last up 0.9% at an all-time high. It has now gained almost 6% in 2025.

Nvidia rockets to record high, reclaims title of world's most valuable company

Nvidia's stock soared to a record high on Wednesday, propelling it past Microsoft to become the world's most valuable company. This surge was fueled by an analyst's prediction of a "Golden Wave" of AI adoption, with Loop Capital raising its price target for Nvidia. The resurgence of the "AI trade" has boosted chip stocks, reflecting optimism about the technology's potential. Nvidia's stock hit a record high on Wednesday, and the chipmaker reclaimed the crown as the world's most valuable company after an analyst said the chipmaker was set to ride a "Golden Wave" of artificial intelligence. Shares of the Santa Clara, California-based company rose over 4% to a record high of $154.10. The rise sent Nvidia's stock market value to $3.76 trillion, overtaking Microsoft, which was last valued at $3.65 trillion following a 0.2% increase in its stock. Fueling Nvidia's latest rally, Loop Capital lifted its price target for the designer of high-end AI processors to $250 from $175, while maintaining its "buy" rating. "Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand," Loop Capital analyst Ananda Baruah wrote in a client note. Nvidia's latest gains reflect the U.S. stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology. Nvidia recently traded at about 30 times analysts' expected earnings for the next 12 months, below its average of about 40 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains. Nvidia, Microsoft and Apple have traded places several times as the world's most valuable company over the past year, with Microsoft leading recently after overtaking Nvidia in early June. Apple's stock rose 0.4% on Wednesday, putting its value at $3.0 trillion. Nvidia has now rebounded over 60% from its closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations the White House will reach trade deals to soften the tariffs. The S&P 500 technology sector index was last up 0.9% at an all-time high. It has now gained almost 6% in 2025.

Nvidia Stock Soars Near Record High: What's Driving the Rally? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA is continuing its remarkable run Wednesday, with shares climbing 2.6% to $151.74, near a new all-time high. The stock's recent run completes a full recovery from a 17% drop in January, initially sparked by fears that China's DeepSeek AI could challenge Nvidia's market dominance. What To Know: Nvidia's rebound in recent weeks has been fueled by a significant easing in U.S.-China trade tensions and a stellar first-quarter earnings report on May 28. The company announced earnings per share of 81 cents on a staggering $44.06 billion in revenue, a 69% year-over-year increase, blowing past analyst expectations and reaffirming its leadership in the AI chip sector. Adding to the bullish sentiment, Nvidia's stock is on the verge of a "golden cross," a technical pattern where the 50-day moving average surpasses the 200-day average, often signaling a sustained uptrend. Historically, this pattern has preceded massive rallies in Nvidia's stock, with past occurrences leading to triple and even quadruple-digit percentage gains. Read Also: HCLTech, AMD Partner To Power Next-Gen Enterprise AI And Cloud Adoption Despite recent allegations that DeepSeek has been supplying Nvidia's advanced chips to China's military, circumventing U.S. export controls, investors remain focused on the company's explosive growth, which continues to vastly outpace competitors like Intel Corp. Analyst Updates: Following its strong earnings report, Wall Street has shown overwhelming confidence in Nvidia's continued growth. In a flurry of updates on May 29, numerous firms reiterated their positive ratings and raised price targets. Notably, Truist Securities increased its target to $210, and Rosenblatt lifted its target to $200. The bullish sentiment has continued into June, with Barclays raising its price target to $200 on June 17 while maintaining an "Overweight" rating. The vast majority of analysts maintain a "Buy" or equivalent rating, with many price targets suggesting a potential upside of 15% to over 35% from its current highs. According to data from Benzinga Pro, NVDA has a 52-week high of $153.13 and a 52-week low of $86.62. Read Also: Alibaba Accelerates Global AI Push, Targets Overseas Data Centers How To Buy NVDA Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in NVIDIA's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock NVDANVIDIA Corp$152.172.89%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum70.43Growth98.65QualityNot AvailableValue7.07Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Nvidia, Microsoft On Track To Achieve $4 Trillion Market Cap, Says Analyst Dan Ives: 'Tech Bull Market Is Still Early' - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA and Microsoft Corporation MSFT are poised to become the first companies to reach a $4 trillion market cap, driven by the burgeoning demand for artificial intelligence (AI), predicts Dan Ives, the global head of technology research at Wedbush Securities. What Happened: Ives credits the impressive comeback of these two tech giants to ongoing innovation in AI and their significant investments in AI infrastructure. He predicts that Nvidia and Microsoft will reach a $4 trillion market cap this summer, with attention soon turning toward the $5 trillion mark within the next 18 months, reported CNBC. Despite a rocky start to the year due to concerns over China export controls and global tariff issues, both companies have seen a significant rebound in their stock performance. This is largely due to the ongoing AI innovation and substantial investments in AI infrastructure. Ives mentioned that Nvidia and Microsoft are "foundational pieces" in the ongoing AI revolution. Both companies are projected to reach the $4 trillion market cap milestone this summer, with the focus then shifting to the $5 trillion mark over the next 18 months. Ives believes that the tech bull market is still "in its early stages," driven by the AI revolution. The analyst is particularly optimistic about Nvidia's impact on the AI ecosystem, estimating an $8 to $10 multiplier effect for every dollar spent on Nvidia across the tech ecosystem. SEE ALSO: Bitcoin Steady, Ethereum, XRP, Dogecoin Turn Green As Traders Bemoan 'The Slowest Cycle Yet' - Benzinga Why It Matters: In late June, Nvidia's stock price hit a new all-time high, with the technical outlook remaining robust. This surge was attributed to a combination of factors, including FOMO, results, analyst trends, institutional activity, and short-covering. CEO Jensen Huang also identified robotics as Nvidia's next major growth opportunity, following AI, at the company's annual shareholders meeting. Microsoft, on the other hand, has been solidifying its position as a frontrunner in monetizing AI, driving substantial gains for investors, according to a recent note from the Arora Report. Microsoft's stock, on the other hand, could soar by 44% on the back of the AI boom. In the second quarter of 2025, Wall Street's tech darlings, including Nvidia and Microsoft, pushed sector benchmarks to one of their strongest quarterly gains on record, reigniting optimism for a continued summer rally. Nvidia shares have been on a tear, hitting a new all-time high in late June and are expected to continue rising. On a year-to-date basis, the Microsoft stock surged 18.83%. READ MORE: ClarityCheck Launches Innovative Reverse Lookup Tool to Empower Users Against Digital Scams - Benzinga Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. MSFTMicrosoft Corp$497.35-0.01%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum70.76Growth49.89Quality33.97Value13.21Price TrendShortMediumLongOverviewNVDANVIDIA Corp$157.52-0.30%Market News and Data brought to you by Benzinga APIs

Nvidia Becomes Most Valuable Company As Wall Street Hits Record Highs - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

Wall Street returned to record highs at the end of June, with both the S&P 500 and Nasdaq 100 breaking above their February peaks, capping a powerful rebound from April's tariff-driven lows. Investor sentiment turned positive as geopolitical and trade risks eased. Oil prices slumped $12 to $65 after a symbolic Iranian strike on a U.S. base in Qatar failed to escalate tensions further. President Donald Trump announced that a ceasefire between Israel and Iran had been established, effectively ending the 12-day conflict. During his two-day testimony before Congress, Federal Reserve Chair Jerome Powell said this year's tariff hikes are likely to raise prices and weigh on the economy, warranting caution on interest rate cuts. Powell's neutral tone sparked renewed friction with President Trump, who continues to criticize the Fed chair and fuel speculation over a possible leadership change when Powell's term ends in May 2026. Markets now anticipate that Trump's influence could lead to a more dovish pivot at the central bank. Traders are pricing in two rate cuts before year-end and persistent dollar weakness, with the U.S. Dollar Index falling to levels last seen in February 2022 -- before Russia's invasion of Ukraine -- and heading for its worst half-year since 1991. The stock rally gained momentum at the end of the week as Commerce Secretary Howard Lutnick said the U.S. reached a trade agreement with China. Officials also signaled progress in trade talks with at least 10 other countries, suggesting a softening stance from the White House toward protectionist policies. In corporate news, Nvidia Corp. NVDA surged to new record highs, reaching a market capitalization of $3.85 trillion. The AI-chip giant reclaimed the title of the world's most valuable publicly traded company, overtaking Microsoft Corp. MSFT once again amid continued dominance in the AI chip market. On Friday, Trump announced an abrupt halt to all trade negotiations with Canada, a key U.S. trading partner, due to a Digital Services Tax on U.S. corporations. The move halted the market's strong gains during the session and raised investor anxiety ahead of July's 9 tariff deadline. Read Next: Trump Flips On Canada Trade Deal, Sending Shivers Through Wall Street Image created using artificial intelligence via Midjourney. MSFTMicrosoft Corp$495.92-0.31%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum71.59Growth50.05Quality33.67Value13.24Price TrendShortMediumLongOverviewNVDANVIDIA Corp$157.561.64%Market News and Data brought to you by Benzinga APIs

Nvidia Stock: Buy at the Current High? | The Motley Fool

Nvidia (NVDA 1.74%) has proven itself to be at the center of the artificial intelligence (AI) revolution. The company designs the most sought-after AI chips to power the performance of AI models and has expanded into a full range of AI products and services, from networking to enterprise software and even a new compute marketplace offering. All of these efforts have helped Nvidia's earnings roar higher, and the company ended the latest fiscal year at a record revenue level of $130 billion. To further illustrate the pace of growth, investors only have to look back two years. Then, Nvidia's annual revenue totaled $27 billion. Nvidia clearly has been a winner in this AI boom. This victory extends to stock price performance, with the shares climbing a jaw-dropping 1,500% over the past five years to reach a new high this week. Now the logical question is: Should you buy Nvidia at this high or wait for a lower entry point? Nvidia has played and surely will continue to play a pivotal role in the AI story. Nvidia sells the most powerful graphics processing units (GPUs) on the market and has designed a variety of other products to accompany them. So customers, for example, might use Nvidia GPUs along with its high-speed connection NVLink so processors can share data. Customers may opt for Nvidia application software to build AI agents and various AI workflows, or the company's infrastructure software to manage processes. And just recently, Nvidia launched DGX Cloud Lepton, a marketplace where developers can access GPUs from a variety of connected cloud providers. Thanks to its innovation throughout the AI universe, Nvidia has made itself an almost unavoidable option for most companies aiming to develop and apply AI to their businesses. Importantly, Nvidia also has been first to market with many of its products and services, allowing it to take the lead, and its ongoing innovation and this effort to continually offer customers more service options may keep it there. It's no surprise that all of this has resulted in soaring earnings -- rising in the double- and triple-digit percentages -- and high profitability on sales. Nvidia has maintained gross margin exceeding 70% during most quarters, only declining to 60% in the recent quarter due to a charge linked to lost sales in China. This leads me to the main risk to Nvidia right now, and that is its presence in that particular market, one that made up 13% of sales last year. The U.S. has imposed controls on exports of chips to China, blocking Nvidia's access to that market. The move prompted Nvidia to remove China from its sales forecasts due to being unable to predict what might happen. Nvidia surely would see higher growth if it could sell chips to China, but even without that market, growth is solid. It's important to remember that U.S. customers actually make up nearly half of Nvidia's total sales. Even in the worst scenario -- zero sales in China -- Nvidia's AI growth story remains bright. Even with growth going strong and the future looking bright, investors might wonder if buying Nvidia now, at a new high, is a good idea. The stock trades for 35 times forward earnings estimates, higher than a few weeks ago, but lower than a peak of more than 50 just a few months ago. Considering Nvidia's earnings track record, market position, and future prospects, this looks like a reasonable price -- even if it's not at the dirt cheap levels of a few weeks ago. Of course, stocks rarely rise in one straight line, so there very well could be a dip in the weeks or months to come, offering an even more enticing entry point. But it's very difficult to time the market and get in at any stock's lowest point. It's a better idea to buy at a reasonable price and hold on for the long term. And here's why: Nvidia's gains or losses over a period of weeks or one quarter, for example, won't make much of a difference in your returns if you hold onto the stock for several years. That's why you don't necessarily have to worry about buying at the high when you're a long-term investor, as long as the stock's valuation is fair. That's the case of top AI stock Nvidia right now, making it a buy -- even at the high.

Which "Magnificent Seven" Stock Makes the Best Buy for the Second Half? | The Motley Fool

A group of technology stocks, known as the "Magnificent Seven" -- a nod to the 1960 Western -- led stock market gains last year and has started to rebound in recent times. Which one makes the best buy for the second half? The answer to that question is Nvidia (NVDA 1.74%), even though the stock has already climbed 800% over the past three years. Let's find out why this top artificial intelligence (AI) stock may still be in the early days of its growth story. Nvidia has played a key role since the first days of the AI boom, and this is because it designs the crucial element that makes AI work: chips. They're known as graphics processing units (GPUs), and they power the fundamental step of training AI models, a process that allows those models to then handle complex tasks and solve real-world problems. So, without these chips, we wouldn't have AI. This helped Nvidia's revenue take off a few years ago, as you can see in the chart below. In Nvidia's earlier days, it primarily served the video gaming market, which resulted in progressive growth, but revenue levels were a far cry from today's AI-driven revenue. This is because companies realize the potential of this technology to save them time and money and even help them develop game-changing products and services, so they're pouring investment into AI. And Nvidia, as the leading chip designer, is benefiting. This potential is further illustrated by forecasts calling for the AI market to reach into the trillions of dollars in a few years from now. Importantly, Nvidia isn't just about GPUs. The company has built an AI empire, creating software and networking tools, and it even aims to power the humanoid robots of tomorrow. This expansion is key to Nvidia's growth because it enables the company to benefit from every stage of AI development -- not just the early days of infrastructure ramp-up. Meanwhile, Nvidia has also put the focus on innovation to ensure it stays ahead of its rivals. It has pledged to update its chips yearly and has already offered investors visibility into planned launches over the coming three years. Though rivals are carving out market share -- for example, Advanced Micro Devices recently reported a 57% increase in data center quarterly revenue -- Nvidia's innovation should keep it in the top spot. The enormous demand for AI means that others, like AMD, can succeed without truly encroaching on Nvidia's territory. The biggest disappointment for Nvidia and investors at this point (and possibly into the future) is the situation concerning exports to China. The U.S. has blocked chip exports, cutting Nvidia out of the market that represented 13% of its revenue last year. This isn't a non-event, and if the situation remains as is, it limits Nvidia's growth opportunities to some degree. The good news is that Nvidia makes most of its revenue in the U.S. and a great deal in other locations as well, so the export situation doesn't necessarily translate to slow growth for this chip giant. All this sounds positive, but why is Nvidia the best Magnificent Seven buy for the second half? Nvidia remains the best overall AI bet due to its deep presence across every stage of the technology's growth. The world's biggest tech companies turn to Nvidia to power their platforms, and that's unlikely to change, as these customers aim to use the fastest processors available -- and those are likely to have the name Nvidia on them well into the future. Nvidia will accompany these customers as they deploy AI agents within their businesses or develop humanoid robots down the road. At the same time, Nvidia's valuation leaves the stock plenty of room to run. Though it's inched higher in recent weeks, it still trades significantly lower than it did just a few months ago, at 36 times forward earnings estimates compared to more than 50 times. All these elements, from Nvidia's presence across AI to its price today, support my prediction that this stock will roar higher in the second half and over the long run, too.

Where Will Nvidia Be in the Next 3 Years? | The Motley Fool

Rewind to early 2023 -- few believed that Nvidia (NVDA 1.74%) could climb any higher. It already felt expensive and fully priced. Then it surged nearly tenfold, reshaping itself from a chip supplier into a global artificial intelligence (AI) infrastructure behemoth. Today, with a market cap of $3.5 trillion, it's not about whether Nvidia dominates the AI landscape, it's about what's next. In its most recent quarter (the first quarter of fiscal 2026, ended April 27), Nvidia delivered a jaw-dropping $44.1 billion in revenue, up 69% year over year. For perspective, that's more than Starbucks and Netflix earn combined in a quarter. Of that total, $39.1 billion came from the data center segment, representing a 73% increase year over year. These results reflect the dramatic demand for the company's AI infrastructure from enterprises and governments. Several major growth drivers remain intact. Enterprises and cloud providers are investing aggressively in data centers and AI infrastructure. The AI data center market is expected to be worth nearly $100 billion by 2030. The company's Blackwell architecture chips, the successors to the widely adopted Hopper chips, are already seeing strong demand from hyperscalers and enterprises, primarily for AI inference workloads (deploying AI models in a production environment) -- far ahead of supply. To cater to the demand, Nvidia reserved full production capacity at Wistron's new Taiwan plant through 2026 for Blackwell and Rubin AI servers. Nvidia is no longer just a chipmaker. It now offers a full-stack solution to accelerated computing needs. From hardware to software and networking, Nvidia's ecosystem supports high-performance and low-latency deployment. Nvidia's software offerings are contributing recurring and high-margin revenue streams. Hence, as software becomes a larger portion of the company's overall revenue mix, gross margin can increase from the already high 61%. Beyond data centers, Nvidia is also positioned to benefit from the increasing demand for AI technologies across new use cases in areas such as automotive, edge AI, robotics, and industrial design. These use cases are still developing but can prove significant catalysts in the long run. Despite its many pros, Nvidia has its share of risks. Nvidia is facing revenue headwinds due to restrictions on international exports, especially to China. The company estimated a loss in H20 chip revenue of around $8 billion in the second quarter due to U.S. export controls for China. In the event of escalating geopolitical tensions, this poses a significant risk to Nvidia. Competition is also heating up. Advanced Micro Devices is catching up, while hyperscalers such as Alphabet and Amazon are also developing custom chips. Analysts now estimate the stock's 12-month price target around $176, with the highest target estimate of $250 and the lowest of $100. To see if these estimates make sense, let's use consensus analyst estimates for Nvidia's earnings per share (EPS). Analysts are estimating Nvidia's EPS to be $4.32, $5.72, and $6.44 in fiscal 2026, fiscal 2027, and fiscal 2028, respectively. Nvidia is trading at 36 times forward earnings. Applying a more conservative multiple of 30x, (down from today's elevated levels but suitable for a high-growth technology stock), and you get a three-year price target of around $193 -- roughly 25% upside from today's levels, or around 7% compound annual growth rate (CAGR). This does not seem a very attractive proposition in the current high-inflation environment. However, if Nvidia's bull case holds, then the company's EPS can reach $7.63 in fiscal 2028 and enjoy a premium multiple of 35x (more in line with current levels). In that case, the company's share price can be nearly $267 at the end of 2028 -- around 73% up from today's level, or a 20% CAGR. Finally, in the bear case, Nvidia's EPS is estimated to be around $5.11 and forward P/E multiple can be close to 25 (the lower end for a high-growth company), translating into a $127.11 share price. This would be almost 17% lower than today's price. Nvidia's valuation already incorporates a significant amount of optimism, and the base case, with 7% annual returns, may not adequately justify the risk in a high-interest rate environment. While there is upside potential, the stock currently makes sense primarily for long-term investors with a high risk appetite who are very optimistic about the AI infrastructure opportunity.

Nvidia Will Be Wall Street's First $6 Trillion Company, According to One Highly Optimistic Analyst | The Motley Fool

There's a new high-water price target for Wall Street's artificial intelligence (AI) darling. Roughly three decades ago, the advent and proliferation of the internet began changing corporate America forever. Although it took many years before businesses figured out how to optimize their internet usage to maximize their margins and profits, it became a game-changing technology that helped companies reach new customers. For 30 years, Wall Street and investors have been waiting for the next technological leap that could catapult corporate growth. After a long wait, artificial intelligence (AI) looks to be the answer. With AI, software and systems are given the capacity to make split-second decisions without human assistance. It's a broad-reaching technology that the analysts at PwC believe can increase global gross domestic product by a whopping 26% come 2030. While a laundry list of businesses has benefited from the AI revolution, none has reaped the rewards of this technological leap forward more than semiconductor titan Nvidia (NVDA 1.74%). Since the end of 2022, Nvidia's market cap has catapulted from $360 billion to an all-time closing high of $3.76 trillion, as of June 25. But according to one highly optimistic Wall Street analyst, the stock market's AI darling is just warming up and on its way to a greater than $6 trillion valuation. To be fair, buy ratings are a dime a dozen when it comes to Nvidia. As of June, 66 Wall Street analysts had issued a rating on Nvidia, with a combined 58 listing it as the equivalent of a strong buy or buy. That compares with just one sell rating. However, the June 25 update from Loop Capital analyst John Donovan stands out from the crowd for one particular reason: His and his firm's price target is head and shoulders above everyone else's. Donovan lifted Loop Capital's price target for Nvidia from $175 per share to $250. If Nvidia's share count stays static, we're talking about a $6.1 trillion market cap if Donovan's issued price target is achieved. Nvidia is already the undisputed leader in graphics processing units (GPUs) deployed in AI-accelerated data centers. The company's Hopper (H100) and successor Blackwell GPUs have consistently been backlogged due to overwhelming demand. With demand for AI-GPUs handily outpacing their supply, Nvidia has been able to charge a premium for its hardware, which in turn has sent its gross margin to north of 70%. But Donovan only sees this dominance building. In his note to investors that explained Loop Capital's Street-high price target, Donovan pointed to Nvidia shipping an estimated 6.5 million GPUs this year and 7.5 million next year, with average selling prices for these GPUs topping $40,000. For context, Nvidia has enjoyed a 100% to 300% pricing premium over its AI-GPU direct rivals. More specifically, in speaking with various cloud-service providers, Donovan anticipates that an uptick in data center spending from governments, midsize cloud providers, and startup companies can lead to the next wave of supercharged growth for Nvidia. For instance, CoreWeave's purchase of 250,000 Hopper chips is the perfect example of startups angling to capitalize on the presumed insatiable demand for compute capacity. The other factor working in Nvidia's favor is that it's been able to grow into its valuation over the last year. Given the company's torrid sales and profit growth, Nvidia is trading at a forward-year earnings multiple of only 27 for fiscal 2027, which will end in January 2027. If Loop Capital's dart throw proves accurate, Nvidia can tip the scales as Wall Street's first $4 trillion, $5 trillion, and $6 trillion business. While there's no disputing Nvidia's monopoly-like market share of GPUs being deployed in AI-accelerated data centers, there are a couple of tangible headwinds Donovan appears to be overlooking that can send Nvidia stock in the opposite direction. Arguably the biggest issue for Nvidia is that every game-changing technology and innovation needs ample time to mature, and we're not at that point yet with artificial intelligence. Including the advent of the internet in the mid-1990s, there hasn't been a next-big-thing trend in three decades that's escaped a bubble-bursting event early in its expansion. The fact that most businesses aren't generating a positive return on their AI investments, nor have they optimized their existing AI solutions, suggests that investors have grossly overestimated the early-innings adoption rate and utility of this technology. This bodes poorly for Nvidia stock over the short run. It's also impossible to overlook growing competitive pressure. Don't get me wrong, CEO Jensen Huang's aggressive innovation timeline, which will bring a new advanced GPU to market annually, should have no trouble keeping Nvidia in the lead when it comes to compute potential. But there's more to data center infrastructure than just speed. It can be argued that Nvidia's biggest competitive edge has been the persistent scarcity of AI-GPUs. But with Taiwan Semiconductor Manufacturing ramping up its chip-on-wafer-on-substrate capacity and Advanced Micro Devices upping its production of Instinct series AI-accelerating chips, direct competition is growing. What's more, many of Nvidia's top customers by net sales are internally developing GPUs to use in their data centers. Even though this internally developed hardware trails Nvidia's Hopper and Blackwell in terms of compute potential, it's notably cheaper and more readily accessible (i.e., not backlogged). Internally developed chips could easily take up valuable data-center real estate, delay future upgrade cycles, and pressure Nvidia's gross margin. Lastly, Donovan's research overlooks the sustained priciness of Nvidia stock relative to its trailing-12-month (TTM) sales. Over the past three decades, megacap companies on the leading edge a next-big-thing trend have historically topped out at TTM price-to-sales (P/S) ratios of roughly 30 to 43. Even Nvidia topped out at a TTM P/S multiple of just over 42 last summer. Although the company's rapidly expanding sales has brought this multiple down, it's still tipping the scales at a P/S ratio of almost 26. That's well over double other market-leading "Magnificent Seven" stocks, and history strongly suggests it's not sustainable.

Why Nvidia Stock Soared 17% in June | The Motley Fool

Nvidia (NVDA -2.87%) stock jumped 17% in June, according to data provided by S&P Global Market Intelligence. It reported a phenomenal earnings report at the end of May, and that boosted investor confidence through June. Nvidia has exploded from its one-time focus on the gaming industry to become a serious force in the development of generative artificial intelligence (AI). It has as much as 95% of the AI semiconductor market, and the biggest names in the industry, like Amazon and Meta Platforms, rely on its premium products to drive their AI platforms. These were some of the highlights from the 2026 fiscal first quarter (ended April 27): The data center opportunity is of particular importance. Data centers are the huge AI factories where companies train their large language models (LLMs). There were 100 Nvidia-powered data centers launched in the first quarter, double from last year, and they're also using double the amount of chips year over year. This segment should be a continued source of high growth for Nvidia. However, investors shouldn't discount the company's other segments, which are also growing rapidly. It has robust gaming and auto segments, and although Nvidia became a household name because of AI, it has a diversified business that makes it stronger. Nvidia stock had fallen earlier this year as fears about tariffs and competition worried the market. It appears, for now at least, that those worries are unfounded, and smart investors scooped up shares on the dip. It's still reasonably priced relative to its growth prospects. Wall Street sees earnings per share (EPS) for this year growing from $2.99 to $4.29 and reaching $5.76 next year. That's a 39% compound annual growth rate, and Nvidia stock trades at a forward one-year P/E ratio of 27. Even if you didn't manage the press the buy button, it's not too late. Nvidia stock has plenty of life left in it as AI keeps exploding, and Nvidia powers that growth. It won't be able to create the same kind of shareholder wealth that it did for early investors, but it should keep rewarding patient investors over the long haul.

With a $3.8 Trillion Market Cap, Does Nvidia Really Still Have Room to Grow? | The Motley Fool

Nvidia (NVDA 1.74%) is the largest publicly traded company, with a market cap of about $3.8 trillion on Friday afternoon, and a stock price that's just below its all-time high. Nvidia's growth story has been nothing short of extraordinary. Revenue has grown by nearly 400% over the past two years as AI investment activity has exploded, and that's after an already extremely impressive multidecade history. If you don't already own Nvidia, is it too late to invest? With an estimated 95% share of its most important end markets and nearly $150 billion in revenue over the past four quarters, it's easy to understand why Nvidia's upside from here might appear limited. But I'd argue the opposite. Not only do I think Nvidia's revenue could get much larger from here, but the stock could produce market-beating returns for many years to come. Nvidia has four main business segments: data center, gaming, professional visualization, and automotive. The data center segment is by far the most important. In simple terms, AI-focused applications require a tremendous amount of data processing ability, and Nvidia's data center accelerator products are widely considered to be the gold standard. As mentioned, the company has a dominant (estimated) 95% market share. And the industry itself is growing rapidly. Over the past year, Nvidia's data center segment sales tripled, and the $120 billion global market for data center accelerators is expected to roughly double over the next five years. Data center capital spending -- mostly by large tech companies -- is expected to reach $1 trillion annually in just three years, compared to $500 billion today. In other words, if Nvidia simply maintains its dominant market share, the largest and most critical part of its business could double or more in size by 2030. The company's other segments have lots of room to grow as well. The automotive segment is a big opportunity, as advanced autonomous vehicle technology is still in the early stages of evolution, and Nvidia already has 20 of the top 30 EV manufacturers on its customer roster. In fact, GPUs for automotive applications is expected to be a $45 billion market by 2030, and Nvidia also develops software systems, safety systems, and more for automotive applications. Nvidia's free cash flow hasn't been anywhere near the current level for long, but now that the company is generating boatloads of cash, management is allocating it in shareholder-friendly ways. The company does pay a quarterly dividend, but it's a minuscule one (0.03% yield), at least for now. But buybacks are becoming an increasingly large focus of management. In the first quarter, Nvidia spent more than $14 billion on stock buybacks, which was more than half of the company's free cash flow. However, keep in mind that Nvidia's free cash flow grew by 75% year over year, and is expected to grow rapidly for at least the next few years, so it wouldn't be surprising to see buybacks expand along with it. Finally, Nvidia is not a cheap stock, trading at 48 times trailing 12-month earnings and about 34 times sales. But it isn't necessarily an expensive one. Nvidia's revenue growth (both past and projected) clearly justifies a higher P/E ratio. Analyst estimates call for 44% year-over-year earnings growth in the current fiscal year (ending January 2026) and another 34% in the following year. Plus, the combination of this growth rate and Nvidia's stellar margins (net margin over 50%) warrant an elevated price-to-sales multiple. In fact, by some popular metrics, such as the price/earnings-to-growth (PEG) ratio, Nvidia stock looks rather attractive right now. The bottom line is that a combination of a growing market opportunity, shareholder-friendly capital allocation, and a reasonable valuation could allow Nvidia to continue to grow and produce excellent returns for years to come.

1 Wall Street Firm Just Gave Nvidia Stock a $250 Price Target. Is It Time to Buy? | The Motley Fool

Nvidia (NVDA 0.35%) stock currently trades for around $155. However, Loop Capital just gave Nvidia a new price target of $250 per share. That indicates around 60% upside from today's price, but the implications of a $250-per-share stock are far greater. If Nvidia's stock rose to that level, the company would be worth more than $6 trillion. There's never been a $4 trillion company, let alone a company valued at $6 trillion. However, when you examine the reasons behind Loop Capital's $250 price target for Nvidia, there's solid information supporting the thesis. Nvidia is benefiting from an artificial intelligence (AI) boom, as its graphics processing units (GPUs) are powering the models behind these AI innovations. GPUs excel at workloads that require immense computing power, as they can process multiple calculations in parallel. Furthermore, GPUs can be connected in clusters to amplify this effect. Loop Capital analyst John Donovan stated that GPUs are becoming more popular for non-AI workloads. Currently, about 15% of the computing capacity today is non-CPU-based. However, he believes the figure will climb to a range of 50% to 60% by 2028. This presents a $2 trillion market opportunity for Nvidia. So, Loop Capital isn't just blowing smoke; it's got real numbers to back it up. Those figures are projections, but they follow the path that legendary Nvidia CEO Jensen Huang has spoken about regarding computing's evolution. With Nvidia being dominant in the data center GPU sector (most estimates have Nvidia at a 90% or greater market share), it will reap the lion's share of this continued growth. Still, there is one item that Donovan cautioned investors on. One caveat that Donovan gave in his analysis of Nvidia's stock is that it continues to trade for roughly 30 times forward earnings. While this mark has historically been expensive, most of Nvidia's big tech peers are also trading around this range despite having slower growth than Nvidia. Take Apple, for example. Its stock traded at an average of 29 times forward earnings since the start of 2023, despite growing revenue at a maximum rate of 6% during that time frame. Nvidia's growth is far more rapid than that, and it has the staying power to continue delivering its elevated growth levels. I think it's safe to assume that Nvidia can continue trading around 30 times forward earnings, unless something drastic happens with interest rates (they would have to rise significantly from today's levels). So, is Nvidia a buy at today's levels? I'd say absolutely. There's still significant growth potential in the AI trend, as well as in the broader computing space. Nvidia is the clear market leader and is one of the best ways to capitalize on this computing buildout boom. Based on Nvidia's size alone, it will be challenging to deliver massive returns comparable to those in 2023 and 2024. However, I believe Nvidia can outperform the market, making it an excellent stock to buy right now.

Is Nvidia the Top Artificial Intelligence Stock to Buy in July? | The Motley Fool

As we reach the halfway mark in 2025, it's clear that artificial intelligence (AI) remains a dominant theme in the market. This hasn't changed since the start of 2023, so some investors may be becoming a bit fatigued from all the AI-related hype. However, the reality is that there has never been a larger investment theme. Most AI hyperscalers are projecting record capital expenditures for 2025, primarily focused on expanding their cloud computing capacity for AI applications. That will help one company more than any other: Nvidia (NVDA -2.22%). Nvidia has been the top AI stock pick for several years now, and it remains a strong choice for the future. But is it the best AI stock to buy in July? Nvidia manufactures graphics processing units (GPUs) -- chips that were originally designed to allow computers to generate high-quality graphics in video games. What allows them to do that so well is that these chips are parallel processors -- specifically suited to handling the types of computations that can easily be broken down into a large number of small tasks that can be handled simultaneously. Among the types of high-performance workloads that fit that particular bill are training and running AI models. Nvidia has competitors in the data center GPU market, but none come close to the technology and supporting products that it offers. Most estimates peg its market share in that niche at around 90%, which is incredible considering the substantial amount of money spent on data centers. Data center spending is also projected to skyrocket over the next few years. During his keynote at Nvidia's 2025 GTC developer event, CEO Jensen Huang cited a third-party estimate that data center capital expenditures totaled $400 billion in 2024. Considering that Nvidia generated $115 billion in data center revenue during its fiscal 2025 (which encompassed most of 2024), it's clear that a solid chunk of that spending flowed its way. That same estimate also forecast that data center capital expenditures would rise to $1 trillion by 2028. If Nvidia can maintain its share of those expenditures, its revenue would more than double over that period. That presents quite the bullish case for Nvidia stock, and even if the actual spending comes in below the $1 trillion mark, the chipmaker's growth should still be impressive. AI computing capacity is far from being fully built out to the degree that the tech sector expects to need, which keeps the story behind Nvidia's stock intact. But is the stock priced at a reasonable level for new investors to capitalize on future growth? There's a common notion that Nvidia's stock has become quite expensive, but that's something investors need to get out of their heads. While it may have been true early on in the AI arms race, that's no longer the case. It trades today at 36 times forward earnings, which is right around where some of its big tech peers are trading -- and Nvidia is growing at a faster rate than they are. Microsoft and Amazon trade for 37 and 34 times forward earnings, respectively. Yet during their most recently reported quarters, Microsoft grew its revenue at a 13% pace, while Amazon grew at a 9% pace. I'm not trying to argue that Nvidia is cheap, but its valuation is hovering around the same levels as its big tech peers. If its data center GPU sales grow at the rates that it expects, then the price today will be inconsequential years down the road. As a result, I'm confident in labeling Nvidia as the best AI stock to buy in July.

Can Nvidia Stock Reach $200 This Year? | The Motley Fool

Nvidia (NVDA -2.87%) stock is back in the market's good graces after plunging earlier this year. Despite reassurances from management, investors were worried about the company's future when China's DeepSeek chatbot came out and further concerned about impact of new tariffs. As Nvidia continues to report stellar earnings results and upgrade its technology amid a pause on many of the new tariffs, investors are feeling more love toward Nvidia stock. As of this writing, Nvidia stock trades just north of $150, and it's back to beating the market. Can it reach $200 before the end of the year? Nvidia makes the semiconductor chips necessary to drive generative artificial intelligence (AI), or the apps that "think" and create. There are two basic stages to that process: training and inference. The large-language models that run the data and produce output need a tremendous amount of power for these processes, training on millions of data points that are constantly updated and running through tons of algorithms to create accurate content and images. Nvidia's chips make that happen. Since so many tech companies want to use generative AI in their operations today, Nvidia's chips are in great demand. Although there are alternatives, Nvidia has between 70% and 95% of the market, depending on who you ask. Even at the lower end, that's a huge lead over the competition. As the gold standard, Nvidia is relied upon by the biggest companies like Microsoft and Amazon as a partner. This is where the greatest opportunity is. Amazon, for one, has its own line of budget options for smaller companies, but the large, brand-name clients it services need Nvidia's powerful chips. The demand is only expected to increase. According to Statista, the AI opportunity is expected to increase at a compound annual growth rate of 26.6% over the next five years, reaching $1 trillion. A huge portion of that is likely to go to Nvidia. Management continues to launch new products that can handle higher data loads, making them more attractive to clients. Its Blackwell technology, which launched last year to replace the Hopper architecture, is already moving into Blackwell Ultra, and management is planning to release a new range of chips next year under the Rubin name. In the near term, Nvidia continues to report phenomenal results despite serious setbacks. U.S. regulations mean it can't ship its best chips to China, stymying progress in that market, and Nvidia took a hit to its earnings in the fiscal 2026 first quarter (ended April 27) related to a charge for orders it couldn't fulfill. Yet the first-quarter results were outstanding. Revenue increased 69% year over year, and earnings per share (EPS) were up from $0.60 last year to $0.76 this year, inclusive of the one-time charge. Management is guiding for growth to decelerate in the second quarter but remain high at a 50% increase year over year. Wall Street is looking for EPS of $1, up from $0.68 last year. For the full year, Wall Street is expecting $200 billion in revenue and $4.29 in EPS, up from $130 billion (a 54% increase) and $2.99 (a 43% increase) over last year. If the valuation remains constant, Nvidia stock will rise along with its earnings. If it rises 54% from where it started out this year, it will reach $212. If it rises 43%, it will reach $197. If nothing much changes and Nvidia meets Wall Street's expectations, the stock should surpass $200 by the end of the year. However, Nvidia tends to beat expectations. If that happens, it could rise further. High-growth stocks can also carry higher valuations. If Nvidia's valuation rises, the price could also rise further. At the current price, Nvidia stock trades at a price-to-earnings ratio of 50 and a price-to-sales ratio of 26. Those aren't cheap numbers, but they're pretty reasonable for Nvidia's growth. The likelihood is that Nvidia hits at least $200 before the end of the year, or shoots 27% higher than the price at the time of this writing.

2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $5 Trillion, According to Select Wall Street Analysts | The Motley Fool

Dan Ives at Wedbush recently told CNBC Microsoft could be a $5 trillion company within 18 months. That implies 39% upside from its current market value of $3.6 trillion. It also implies a share price of $690. Here's what investors should know about Nvidia and Microsoft. Nvidia develops accelerated computing solutions. The company is best known for graphics processing units, chips that accelerate complex data center workloads like artificial intelligence (AI). Nvidia accounts for about 90% of AI accelerator sales today and analysts generally expect the company to maintain its market dominance for the foreseeable future despite competition from Broadcom and AMD. Beyond that, Nvidia is also the market leader in networking gear used to support generative AI workloads. The company recently added two major customers in Alphabet's Google Cloud and Meta Platforms, both of which will deploy Nvidia Spectrum-X Ethernet networking platform in their data centers. The company also has a burgeoning software and services business. Nvidia reported first-quarter financial results that beat expectations on the top and bottom lines. Revenue rose 69% to $44 billion due to robust demand for AI infrastructure, and non-GAAP net income increased 33% to $0.81 per diluted share. Importantly, earnings would have increased more quickly had it not been for new chip export restrictions related to its China business. Wall Street expects Nvidia's adjusted earnings to increase at 41% annually through the fiscal year ending in January 2027. That makes the current valuation of 50 times adjusted earnings look reasonable. And if Nvidia's earnings do increase at 41% annually, its market value could hit $5 trillion in the next year while its price-to-earnings multiple falls to 46. Patient investors should feel comfortable owning Nvidia at its current price. Microsoft generates most of its revenue from enterprise software and cloud computing. While the company is best known for its leadership in office productivity software, it also has a strong position in enterprise resource planning, business intelligence, and several cybersecurity software verticals. Also, Microsoft Azure is the second largest public cloud in terms of infrastructure and platform services spending. Central to the company's growth strategy is artificial intelligence. Microsoft 365 Copilot is a generative AI assistant that can summarize content and make recommendations in office applications like Word and Excel. Copilot Studio is a low-code platform that lets customers design custom AI agents. And Azure AI Foundry is a cloud service that lets developers train machine learning models and build AI applications. Microsoft reported solid financial results in the third quarter of fiscal 2025, which ended in March. Revenue increased 13% to $70 billion on particularly strong momentum in Azure, driven by demand for AI services. In addition, the number of customers using Microsoft 365 Copilot increased threefold. Meanwhile, GAAP net income increased 18% to $3.46 per diluted share. Grand View Research estimates software-as-a-service revenue will grow at 12% annually through 2030, while cloud services sales increase at 20% annually during the same period. So, Microsoft has a reasonably good shot at achieving double-digit annual revenue growth through the end of the decade. Indeed, Wall Street estimates Microsoft's earnings will increase at 13% annually through the fiscal year ending in June 2026. However, that consensus still makes the current valuation of 38 times earnings look expensive. Microsoft may reach $5 trillion in the next 18 months, but I would personally avoid buying the stock until the price is more reasonable.

This Artificial Intelligence (AI) Stock Has Quietly Outperformed Nvidia All Year | The Motley Fool

Nvidia (NVDA -2.87%) is now the largest publicly traded company in the world, with a market capitalization of nearly $4 trillion. Wall Street is swooning over the stock in the days of major artificial intelligence (AI) investment. "We are entering the next 'Golden Wave' of Gen AI adoption, and NVDA is at the front-end of another material leg of stronger than anticipated demand," says Ananda Baruah, an analyst at Loop Capital. "We remind folks that NVDA remains essentially a monopoly for critical tech, and that it has pricing (and margin) power." Despite the fanfare, there's actually another major AI stock that has quietly outperformed Nvidia this year. Most people have heard of this business, but few understand how well it is positioned for the next decade of artificial intelligence growth. Investors have been referring to IBM (IBM -1.21%) as "Big Blue" for decades. In the past, the company was known as a technology heavyweight. Over time, however, many of its business segments stalled, being overtaken by more nimble competition. IBM never stopped investing in critical sectors like AI, however. Today, those investments are paying off big. IBM's generative AI business is already producing $6 billion in annual revenue. Considering demand for AI solutions is expected to grow by more than 30% over the next decade, this could soon become one of IBM's biggest profit drivers. Quantum computing is also an exciting business opportunity for IBM. The firm recently unveiled its "Quantum Starling" roadmap, which anticipates a large-scale, fault-tolerant quantum computer by 2030. In layman's terms, IBM thinks it will be one of the first, if not the first, to launch a flexible quantum computer that can handle complex requests at scale -- a historic breakthrough. "While still in the early stages of playing out, IBM is taking this multibillion-dollar quantum computing industry head-on by providing improved software and hardware capabilities to create increased use cases for various sectors," analysts at Wedbush recently wrote. Considering quantum computing can initiate an entirely new wave of AI innovation, IBM's dual focus on both AI and quantum computing could give it a serious long-term edge on competitors focusing on just one arena. This all begs the question: Should you ditch Nvidia stock for IBM? The answer might surprise you. IBM is an exciting AI stock. But there are a few things you should understand about the business versus Nvidia. First, IBM is a large, diversified company. Only a fraction of its business is currently exposed to AI tailwinds directly. That's why analysts predicts just 5.5% revenue growth for IBM this year, versus 53% revenue growth for Nvidia. While IBM does seem to be investing in all the right areas, it will take time for these investments to become meaningful drivers of both sales and profits. Second, IBM is more focused on software than hardware. Nvidia's AI GPUs are widely considered to be the best in the business. And due to its CUDA developer platform, the company has been able to maintain a market share of more than 90% for data center GPUs. IBM, meanwhile, is arguably in a much more competitive field, at least over the near term. As an analyst from Zack's Research concludes, "IBM faces stiff competition in most of its markets." So while Nvidia's products remain the go-to infrastructure for the AI industry, IBM's services are merely an option among a large variety of choices. In summary, AI investors shouldn't ditch Nvidia for IBM just yet. But having exposure to both companies in your portfolio ensures that you're betting on the entire supply chain of AI -- everything from the hardware the AI revolution is being built on to the software that end consumers use.

These Artificial Intelligence (AI) Stocks Have Quietly Outperformed the Market All Year | The Motley Fool

But how often do you see them mentioned among the top AI stocks to own for the long haul? Not a whole lot, I bet. So let me tell you what these tech veterans are doing to earn consistently market-beating performance this year -- without dominating the press. Micron is not the largest memory-chip maker in the world, but it has an advantage over sector leaders SK Hynix and Samsung (SSNL.F 9.01%) right now. The Idaho-based chip maker is first to market with the fourth generation of high bandwidth memory (HBM) -- a key component in the latest and greatest AI accelerator platforms. Samsung and Hynix have their own HBM4 solutions, but Micron is already shipping these chips to its most important customers. AI hardware leader Nvidia (NVDA -2.87%) includes Micron's HBM4 memory on its Blackwell family of AI accelerators. Runner-up AMD (AMD -4.02%) also selected Micron's top-of-the-line memory for its next two generations of Instinct accelerators. As a result, Micron's market share is growing while Samsung is sliding back. Now, Micron's sales are limited by the company's in-house production capacity, as the HBM chips are sold out for the rest of 2025. That's why Micron has invested $10.2 billion in capital expenses over the last three quarters, up from $5.3 billion in the same year-ago period. These costly chip-factory upgrades will be the foundation of Micron's long-term growth opportunity. So Micron is a leading supplier of AI-grade memory solutions. The stock has gained a market-beating 47% in the first half of 2025. Now you know why. Do you still see IBM as a one-stop shop for corporate computing needs? That would be a mistake. The company refocused on AI, cloud computing, and consulting services long before it was cool. The strategy shift led to many years of disappointing shareholder returns, but the big payoff is finally coming in. And of course, Big Blue's fortunes are built around AI. In the recent first-quarter update, IBM posted an order book of more than $6 billion in the WatsonX generative AI service. That's up from roughly $1 billion in the year-ago quarter. That's a big jump. And here's the fun part -- only 20% of this incoming contract portfolio comes from software licenses. The rest springs from consulting services. This is a unique business advantage. IBM's technical expertise goes far beyond its own software tools. When your company's employees need training on a new technology, or hands-on expertise from IT consultants, you're likely to look at IBM's consulting services. Yes, other tech giants can support their in-house software and services, but they're less likely to offer broad technology support. This isn't a new trend. Before the Fool, two different employers sent me to IBM's training centers around the country to keep me up to date with networking standards and programming tools. That was 20 years ago and nothing has changed -- except IBM's heavier focus on high-value topics such as AI systems and cloud computing. IBM's stock has gained 33% in 2025, and the underlying business results were largely based on consulting services in the AI market. If you knew that five minutes ago, you were already ahead of the game. If not, you just earned an edge on most AI investors.

3 Best AI Stocks to Buy in July | The Motley Fool

Traditional metrics say tech stocks are expensive -- and by old-world standards, they are. But that view misses the larger truth: This isn't a bubble. It's the dawn of a new economic epoch -- the beginning of a fundamentally different era for humanity. By early definitions, artificial general intelligence (AGI) -- systems capable of performing a broad range of cognitive tasks at human levels -- may already exist in a primitive form. Yet, markets continue to value the companies building this future with frameworks rooted in the pre-AI era. That disconnect between technological reality and investor perception presents a rare opportunity for those willing to look beyond quarterly earnings. Here's a look at three tech titans poised to lead the charge. Nvidia (NVDA -2.87%) has soared more than 1,600% over the past five years and recently hit a new all-time high of $154.31 in June 2025, capping a sharp rebound from its April lows. Despite a $4.5 billion Q1 charge tied to the H20 chip ban in China -- and a projected $8 billion revenue hit in Q2 -- Nvidia crushed fiscal Q1 2026 earnings estimates, proving its resilience in the face of geopolitical headwinds. Nine of the 10 most powerful supercomputers now run on Nvidia's chips. With hyperscalers expected to invest up to $320 billion in AI infrastructure this year -- up $90 billion from 2024 -- Nvidia remains the clear linchpin of the AI build-out. Loop Capital's Ananda Baruah recently raised his price target to $250, the highest on Wall Street, implying a potential market cap of $6 trillion (up from $3.6 trillion today). The bear case focuses on intensifying competition and its lofty valuation. But with gross margin at 71.3% (ex-China impact) and Blackwell architecture scaling, Nvidia's pricing power remains unchallenged. Trading at 24.7x projected 2028 earnings, the stock isn't cheap -- but true category kings rarely are. ASML (ASML -1.23%) holds a near-monopoly on extreme ultraviolet (EUV) lithography systems, which are ultra-high-tech tools costing between $200 million and $400 million. These machines are essential for producing the most advanced chips, making ASML a critical bottleneck in the global semiconductor supply chain. In the first quarter of 2025, ASML reported strong financial results, with net sales of 7.7 billion euros and a gross margin of 54%, both exceeding the company's guidance. A significant milestone was the shipment of its fifth High NA EUV machine, with these cutting-edge systems now deployed at three different customers, indicating increasing adoption of its most advanced technology. While ASML adjusted its annual revenue growth forecast from a mid-40% range to the mid-teens, it still projects robust sales of 30 billion to 35 billion euros for 2025, representing a substantial increase of 7% to 25% from 2024. This revised outlook, stemming from ASML's guidance, still positions the company favorably within the semiconductor equipment sector. Analysts in this sector anticipate total spending on semiconductor equipment to rise to $110 billion to $121 billion in 2025, up 2% to 7% year over year, further solidifying ASML's dominant position in a growing market. ASML is expected to capture a significant share of this market due to its exclusive position in EUV technology. Trading at approximately 21.9 times projected 2027 earnings, the stock offers investors rare exposure to a technological monopoly at a valuation considered reasonable, especially given its strong long-term tailwinds driven by increasing demand for advanced chips. Furthermore, a key strategic advantage for ASML is its ability to continue shipping EUV tools globally, including to China, under existing export-control exemptions. This differentiates ASML from many U.S. chip-equipment makers facing stricter restrictions, thereby reinforcing its strong market position and global reach. Microsoft (MSFT -1.02%) hit fresh record highs in June 2025, closing at $467.68 and briefly reclaiming its crown as the world's most valuable company with a $3.48 trillion market cap. The company's fiscal Q3 2025 results -- released on April 30 -- demonstrated continued strength in cloud and AI integration, with total revenue up 13% year over year to $70.1 billion and net income rising 18% to $25.8 billion. The key driver: Azure and other cloud services, which grew 33% year over year (35% in constant currency), with AI services contributing 7 percentage points to that growth. Microsoft 365 Copilot continues to scale across enterprise and consumer products, embedding AI into Word, Excel, Outlook, and Teams. Meanwhile, the company's strategic partnership with OpenAI strengthens its position in foundational AI infrastructure and applications. Microsoft remains one of only two companies in the world with a perfect AAA credit rating from both S&P Global and Moody's. It has roughly twice as much cash as long-term debt, giving it one of the strongest balance sheets in the market. This financial fortress enables Microsoft to invest aggressively in AI while maintaining the highest dividend yield among the so-called "Magnificent Seven" tech giants. Trading at approximately 28.5 times projected 2027 earnings and growing earnings per share at an estimated 10% annually, Microsoft offers rare stability through its broad diversification, consisting of key growth vectors like cloud, productivity software, gaming (Xbox, Activision), and professional networking (LinkedIn). Unlike pure-play AI start-ups that hinge on singular breakthroughs, Microsoft generates AI revenue across a layered, global product ecosystem. The AI market is projected to grow from $294 billion in 2025 to $1.77 trillion by 2032. These three companies control critical choke points in this transformation. For investors willing to look beyond quarterly volatility, they offer exposure to technology's most important trend. The future won't wait for the skeptics to catch up.

Think Nvidia Stock Is Expensive? This Chart Might Change Your Mind. | The Motley Fool

Like many high-growth stocks, Nvidia (NVDA 2.62%) shares looked expensive on a fundamental basis over the last three years, even as its price shot higher by almost 980%. Now, some investors likely feel they've missed out because shares trade at what would be considered a relatively high price-to-earnings (P/E) ratio. However, there's an argument to be made that Nvidia is still an inexpensive stock. Here's a look at both sides of the discussion, including one chart that really tells the story that investors should focus on. Even with the stock's resounding three-year gain, its valuation has decreased when looking at price-to-free cash flow (P/FCF) and P/E ratios. That makes sense with sales exploding thanks to unprecedented demand for its GPU chips and other products supporting artificial intelligence (AI) infrastructure. Both of those financial metrics hit one-year lows as recently as early April. The stock has surged higher since then, but both P/FCF and trailing P/E remain below their respective averages over the past 12 months. A P/E of almost 50 based on last year's earnings still may seem excessively high to some, but investors need to look forward, not back. An estimated forward P/E of about 35 is much more reasonable for a growth stock like Nvidia. And growth is what is driving the story. Ongoing global data center construction is driving unprecedented demand for Nvidia products. Clusters of servers containing its GPUs, networking products, and AI architecture power these centers. That's led to rocketing sales in Nvidia's data center segment. A visual display of that growth is what should give investors confidence to buy the stock at recent levels. Nvidia's data center sales continue to increase to record levels every quarterly period. The company plans to release next-generation chips on an annual cadence as well. That should keep sales thriving and the stock moving higher as a result.

Is Nvidia a Good Stock to Buy? | The Motley Fool

Nvidia (NVDA 2.37%) stands at the heart of the artificial intelligence (AI) boom. The company's powerful AI-enabling graphics processing units (GPUs) are essential for the incredible AI models reshaping business and society. While competitors are racing to close the gap, Nvidia's combination of cutting-edge hardware and indispensable CUDA platform will continue to give it a lasting edge. Companies across big tech are spending massive amounts upgrading existing data centers and building new ones to keep pace amid an AI arms race. The scale of the spending is mind-boggling. Just four companies -- Microsoft, Meta Platforms, Amazon, and Alphabet -- plan to spend well over $300 billion in capital expenditures this year alone. That's more than the GDP of 140 countries. It's also well over the inflation-adjusted $280 billion the U.S. government spent over 13 years to send Americans to the moon. Now, Nvidia is obviously not the sole beneficiary here, but it is the biggest. A significant chunk of that $300 billion will go toward purchasing Nvidia's uber-powerful AI chips. To be sure, a ton of them are needed to power these compute-hungry AI models running on servers in data centers the size of 70 football fields, like the one Meta is building in Louisiana. And they aren't cheap. Wall Street expects Nvidia's top line this year to come in just shy of $200 billion, a 54% increase from last year. Although Nvidia's technology continues to be well ahead of the competition, the company's rivals, especially Advanced Micro Devices, are gaining ground. It's unclear how long Nvidia can stay meaningfully ahead from a purely technical perspective. I do think it will be years at least, however. Nvidia has some major advantages: It can afford to outspend anyone in the field, and likely even more importantly, it continues to attract the best engineering talent. Hardware specifications are one thing, but the more enduring moat actually comes on the software side. Nvidia's CUDA platform is a foundational layer that programmers build on top of. CUDA serves as a backbone on which most of today's AI architecture is built. Many higher-level AI tools and platforms are designed to run specifically on CUDA. This creates a significant switching cost for customers. Moving to a rival chip isn't as simple as swapping hardware -- a customer needs to retrain its engineers or hire entirely new ones with different expertise, and overhaul much of their software and workflows. In practice, the time and expense required make switching a non-starter for most organizations. As a result, CUDA effectively "locks in" Nvidia's customers within its ecosystem and allows the company to command premium prices. Nvidia's competitors are definitely trying to unseat CUDA as the industry standard, but that's a difficult task. CUDA is too deeply ingrained in the industry. Perhaps a more disruptive threat could come from regulators who see the CUDA lock-in as a violation of antitrust laws, but despite a Department of Justice probe, it's unclear if this has any serious traction from U.S. regulators. Nvidia has proven its ability to innovate and maintain its edge. Despite fierce competition, there are few companies in my book with the vision that Nvidia has demonstrated, and I believe this, in combination with its technological prowess and CUDA lock-in, will allow Nvidia to continue to succeed. While the company's stock is far from cheap -- it currently trades around 50 times earnings -- I think its continued growth justifies the premium.

Nvidia Shares Hit All-Time High as Companies Add AI Infrastructure | PYMNTS.com

The rise took the company's market cap to about $3.75 trillion, making it the world's most valuable company, ahead of Microsoft, CNBC reportedWednesday. The increase in Nvidia shares was driven by the company's latest earnings results, which showed robust growth and potential for future strength, according to the Bloomberg report. While Nvidia faces restrictions on selling advanced semiconductors in China, the company also has big customers like Microsoft, Meta, Alphabet and Amazon that are aggressively building artificial intelligence infrastructure, the report said. The company's stock price has risen 14% this year after rising 170% last year and leaping 240% in 2023, per the report. Wall Street remains optimistic about the stock because it is showing both high growth and a reasonable multiple, the report said. In a presentation released in conjunction with a shareholder meeting held Wednesday, Nvidia reported that its fiscal year 2025 revenue was up 114% year over year. At the meeting, Nvidia CEO Jensen Huang said that in addition to AI, the company sees opportunities for growth in robotics, beginning with self-driving cars, according to the CNBC report. "We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity," Huang said, per the report. Huang added that the business unit that includes automotive and robotics was up 72% on an annual basis and accounted for 1% of the company's total revenue in the latest quarter, the report said. Together with its AI chips, Nvidia has increasingly been offering related products like software, a cloud service and networking chips, according to the report. Huang said in the shareholder meeting that Nvidia no longer thinks of itself as a "chip company" but rather as a provider of "AI infrastructure" or "computing platform," per the report. During a May 28 earnings call, Huang said Nvidia is pushing ahead with AI infrastructure projects worldwide to meet soaring demand for AI workloads. "The age of AI is here, from AI infrastructures, inference at scale, sovereign AI, enterprise AI and industrial AI," Huang said. "Nvidia is ready."

Veteran fund manager who predicted Nvidia stock rally makes surprising move

About three months ago, some pessimistic investors thought that Nvidia's stock had probably reached a dead end as it fell sharply amid macro uncertainties and trade policies. But the stock has gained 67% since its low in early April. Related: Veteran analyst drops bold new call on Nvidia stock Nvidia was hit hard as the U.S. tightened export restrictions on advanced chips in April. The Trump administration said Nvidia would need an export license to ship the H20 processors to China. The H20 chip was designed under the Biden administration's rules. The chipmaker took a $4.5 billion charge in the April quarter and said it would have made an additional $2.5 billion in revenue without the restriction. Nvidia's CEO, Jensen Huang, has long warned that export controls could hurt U.S. chipmakers and even threaten the country's position as the global leader in technology. "If we want the American technology stack to win around the world, then giving up 50% of the world's AI researchers is not sensible," Huang recently said on CNBC. What's driving Nvidia shares higher? Several developments have driven Nvidia's rally since its April low. The stock first began to recover after the U.S. and China agreed to temporarily pause the elevated tariffs. Sentiment improved further when the Trump administration scrapped the Biden-era AI diffusion rule, which was another export control on advanced AI chips. In May, shares got another boost from news that Nvidia would supply AI chips to Saudi Arabia's Humain, a rising tech player in the region. Related: Veteran analyst offers eye-popping Nvidia, Microsoft stock prediction On May 28, Nvidia posted strong fiscal first-quarter results. Adjusted earnings came in at 96 cents per share on $44.06 billion in revenue, beating Wall Street's estimates of 93 cents and $43.31 billion. The company guided for $45 billion in revenue for the current quarter, just under analysts' forecast of $45.9 billion. Nvidia said that number would have been roughly $8 billion higher without the ongoing export curbs to China. This week's rally was also helped by signs of easing U.S.-China trade tensions. Secretary of Commerce Howard Lutnick told Bloomberg that a trade deal with China has been finalized and signed. The deals said China would ship rare earth metals to the U.S. in exchange for "countermeasure" removal. But it's still unclear whether semiconductors are part of the deal, and chips remain a major sticking point in trade negotiations. Fund manager sells Nvidia stocks amid rally As Nvidia shares climbed, Chris Versace, a Wall Street veteran fund manager who oversees TheStreet Pro's portfolio, just sold part of his stake during the rally. On June 26, Versace trimmed roughly 10% of the portfolio's Nvidia stake at $154.06. The gains were just over 100%. Related: Analyst sends bold message on quantum computing stocks after Nvidia CEO's pivot Versace began his career in equity research and now has more than 30 years of experience. He started buying Nvidia stocks in February 2024. He had predicted Nvidia's rally earlier this year, buying more shares in the dip. More Nvidia: "We remain bullish on the prospects for both companies, especially after Wednesday night's quarterly earnings report and lifted outlook from Micron (MU) ," Versace wrote in a note on TheStreet Pro, adding that he still intended to hold Nvidia shares to "maximize AI and data center build out and AI adoption related returns." Versace said the sale reflected his stance as a "disciplined investor," adding that if Nvidia shares continue to rise and push the stock's weight back to 4.5% of the portfolio, "we'll look to lock in additional gains." As of now, Nvidia makes up 4.19% of the portfolio. Related: Top analyst sends bold message on S&P 500

Nvidia shares hit record high as Wall Street shakes off anxiety about...

Nvidia shares were on track to close at an all-time high on Wednesday as Wall Street investors shook off fears that US limits on chip exports to China would hurt the company's business. Led by CEO Jensen Huang, the AI chip giant's stock rose 4% to nearly $154 per share in Wednesday trading. Nvidia's previous all-time closing high was $149.43, which was achieved last Jan. 6 following President Trump's election win. The stock is up about 11% since the start of the year. The surge pushed its market cap to $3.75 trillion, establishing Nasdaq-listed Nvidia as the world's most valuable company. Microsoft, a key Nvidia customer, ranked second at $3.65 trillion, followed by Apple at approximately $3 trillion. The rally has occurred despite lingering investor anxiety about President Trump's move earlier this year to slap fresh export controls on Nvidia's shipments to China. The restrictions halted shipments of Nvidia's H20 chips - which had been the only AI processors it could legally export to the country. In May, Nvidia told investors it would lose $8 billion in expected sales from China. Huang himself has grumbled that the "$50 billion China market is effectively closed to US industry." However, overall demand for Nvidia's chips remains strong. On Wednesday, Loop Capital analyst Ananda Baruah raised his price target on Nvidia stock to $250 - which, if achieved, would push its market cap to an unprecedented $6 trillion over time. "While it may seem fantastic that NVDA fundamentals can continue to amplify from current levels, we remind folks that NVDA remains essentially a monopoly for critical tech, and that it has pricing (and margin) power," Baruah said in a note to clients. For the full year, Wall Street expects Nvidia's revenue to surge 53% to nearly $200 billion, according to LSEG data. Nvidia shares popped despite mixed results for Wall Street's main indexes. The Nasdaq was up about 60 points, or 0.31%, while the broad-based S&P 500 was flat and the Dow Jones Industrial Average was slightly in the red. The firm dominates the market for advanced computer chips needed to power energy-guzzling artificial intelligence models. Aside from Microsoft, Nvidia's customers include the likes of Sam Altman's OpenAI, Elon Musk's xAI and Mark Zuckerberg's Meta. The Santa Clara, California-based firm also held its shareholder meeting on Wednesday.