Ever since Nvidia (Nasdaq: NVDA) saw a meteoric stock price run, its market valuation has been closing in on a mind-boggling $1 trillion. Its valuation has tripled in 2023 and is up tenfold from the start of 2019. Currently, there are only five publicly traded companies with trillion-dollar valuations. Those are Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), Saudi Aramco (Tadawul: 2222), Alphabet (Nasdaq: GOOGL) and Amazon (Nasdaq: AMZN). That is quite a group that Nvidia is about to join. The move that Nvidia's stock made on May 24 alone was staggering. I don't know that I've ever seen a company with a $750 billion market valuation go up 25% in a single trading session. What drove that big jump in the stock price was Nvidia forecasting quarterly revenue at a level that was 50% higher than analyst estimates. It seems that demand for Nvidia's artificial intelligence (AI) chips is currently nearly unlimited. And that's certainly buoying the stock price... But there's a little too much air in this balloon. |
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