Despite these gains, some analysts believe there is still more room for growth, with Bank of America forecasting that Nvidia's share price could reach $800. However, others have compared Nvidia's rapid rise to a dot-com era stock, warning of a potential bubble that could lead to a wider market downturn when it bursts.
Key takeaways:
- Nvidia has become the 3rd-most-valuable company in the US, overtaking Alphabet, with a market cap of $1.83 trillion.
- Nvidia's shares have risen by 3.64% in the past five days and by 51% this year alone.
- The company's rise in value is largely due to the AI boom, which has increased demand for semiconductors, an industry in which Nvidia is a major player.
- Despite its success, some experts have compared Nvidia's rapid gains to a dot-com era stock, suggesting it could be a 'Big Market Delusion' and warning of a potential market crash when the bubble bursts.