From Nasdaq:

Nvidia reached an all-time high and briefly surpassed Amazon in market cap. The stock has risen 46% YTD, making it the best-performing S&P 500 stock. With market sentiments high, there is speculation over a potential stock split. However, some believe the rise in stock value may be overblown, including valuation guru Ashwath Damodaran. Wall Street’s consensus target price for Nvidia is $675.52, with a high target price of $1,100.

Brokerages have been raising Nvidia’s target price gradually over the last year following stellar earnings releases. A section of the market is now concerned about the company’s valuation, especially with rising interest in the AI space. Analysts expect Nvidia to report earnings this month, which could lead to another increase in target prices. However, there is concern that the AI euphoria may eventually burst.

Valuation guru Ashwath Damodaran believes that Nvidia stands out as particularly overpriced. He plans to sell some Nvidia shares, saying “there is no point having an investment philosophy if you don’t act on it”. While Damodaran prefers Apple and Tesla, analysts have downgraded Apple, disagreeing with his views. Despite overvaluations, for those chasing growth, Nvidia remains a long-term buy and hold.

As some investors are speculating on an NVDA stock split, the debate on whether Nvidia should split its stock in 2024 is ongoing. The tech sector rally led to calls for top performers like Nvidia and Meta Platforms to split their shares. While a stock split does not impact fundamentals, it could aid positive sentiments and boost trading volumes. Ultimately, as Nvidia stock continues to climb, the board may consider a stock split, further exciting retail traders.



Read more: Will Nvidia Keep Going Up in 2024 as Stock Split Chatter Grows?