The investing frenzy over artificial intelligence shows no sign of stopping after blowout earnings and guidance from Nvidia.
Nvidia stock was already up 222% so far this year by Wednesday’s close, with the group’s latest earnings propelling the shares another 8% higher in Thursday’s premarket. The relentless rise in the stock—seen as instrumental to growth in AI—has buoyed the S&P 500 and Nasdaq, as well as sending the market capitalization of Nvidia on a tear that could very well continue.
At a near $1.2 trillion market cap, Nvidia is closing in on Amazon’s $1.4 trillion value and Alphabet’s $1.7 trillion mark, though the likes of Apple , the world’s most valuable company with a market cap above $2.8 trillion, remains further away. Nvidia stock closed at $471.16 on Wednesday and has an average target price among analysts surveyed by FactSet of $574.40, though that could trend higher as more brokers are likely to update forecasts post-earnings. This average price target implies a gain of almost 22% for Nvidia’s stock price, which would translate to its market cap climbing to around $1.42 billion.