Despite concerns about U.S. restrictions on chip sales to China impacting its revenue, at least 17 brokerages have raised their price targets for Nvidia, with one predicting a $3 trillion market capitalization in the next 12 months. Nvidia currently holds a global market share of over 80% in the chip market. The company is central to the AI revolution, with its products being essential for the operation of generative AI technologies.
Key takeaways:
- Nvidia, a leading player in the AI chip market, has reached a market value of $2 trillion, making it the third most valuable company in the U.S.
- The company's stock surged 15% to a record high of $780.85, adding about $260 billion to its market capitalization.
- Nvidia is forecasting a 233% growth in first-quarter revenue, exceeding market expectations, largely due to the high demand for its graphic processing units from datacenters undergoing AI upgrades.
- Despite concerns about U.S. restrictions on chip sales to China, at least 17 brokerages have raised their price targets for Nvidia, with one predicting that the company could reach a $3 trillion market capitalization in the next 12 months.