Nvidia's stock split makes shares more accessible, but reaching $1,200 again may take time.

From Nasdaq: 2024-06-14 07:00:00

Nvidia (NASDAQ: NVDA) is riding high as investors flock to its AI chips, propelling its valuation close to $3 trillion and making it the world’s third-largest company. After a stunning stock price surge, a 10-1 stock split has made shares more accessible, trading around $130 each compared to previous highs of $1,200.

While hitting $1,200 again seems achievable for Nvidia, it may not happen as quickly as the last 10x growth in the past three years. Competitors like Intel and AMD are ramping up their AI chip efforts, challenging Nvidia’s dominance. Market growth projections suggest a slower trajectory for Nvidia’s stock price, possibly taking a decade.

Consider the broader market trends when evaluating Nvidia’s growth potential. With an assumed CAGR of 28.5% in the AI market through 2030, Nvidia may need around nine years to reach $1,200 again. However, factors like competition, market valuation, and evolving technologies may impact the company’s future growth prospects.

Investors keen on Nvidia should weigh its long-term potential against market trends and competitive dynamics. As rival chipmakers and tech giants intensify their AI chip efforts, Nvidia’s path to sustained growth may face challenges. While hitting $1,200 again is feasible, it could take considerable time and strategic maneuvering to achieve such milestones.



Read more at Nasdaq: After Nvidia’s Stock Split, Can It Reach $1,200 Again?