From Morningstar:

Nvidia’s stock has shown unprecedented growth, surprising Wall Street with a 300% annual increase. Analysts believe this trend may continue, driven by revenue from tech giants investing in cloud computing and the rise of AI technology. The stock is currently considered fairly valued but could easily reach $1,000 per share in the future.

Nvidia’s dominance in the market has been significant, contributing to 13-31.5% of the Morningstar US Large-Mid Cap Index’s returns over the past years. While this concentration can benefit the market, any downturn in Nvidia’s stock could lead to outsized losses for investors. The stock’s performance heavily influences the broader market average.

Nvidia’s data center business has seen explosive growth, with revenue rising from $3 billion to $47.5 billion. Analysts project that next year’s data center revenues could reach $101 billion. This growth has translated into soaring earnings per share for Nvidia, with expectations of reaching $26.50 in the next fiscal year. However, the uncertain competitive landscape in AI presents unique risks to Nvidia’s outlook.



Read more at Morningstar: Nvidia Lives Up to the Hype – 5 Charts Show Why