From Nasdaq:

Nvidia briefly joined the $2 trillion club following a surge in stock prices, becoming the most expensive “Magnificent 7” stock. The company’s success can be attributed to AI-driven price action, with revenues expected to surpass $100 billion this fiscal year and $130 billion in the next. Wall Street analysts are optimistic about Nvidia’s future growth.

Despite its rapid rise, Nvidia’s valuation remains reasonable compared to peers. Analysts expect the stock to continue climbing, with a “Strong Buy” rating. The possibility of Nvidia becoming the world’s largest company is becoming more plausible, with a Street-high target price of $1,400 implying a $3.5 trillion market cap.

While some, including valuation expert Ashwath Damodaran, believe Nvidia is overvalued, others see it as a strong growth opportunity with the potential to become the biggest company in the world. CEO Elon Musk similarly foresees Tesla achieving this status. Nvidia’s recent earnings call has bolstered market sentiment towards the company, contributing to its current momentum.



Read more at Nasdaq: Why Is Nvidia Stock So High, and Can NVDA Become the Biggest U.S. Company?