Nvidia's success has significantly impacted the S&P 500 and the Nasdaq, contributing to record highs in U.S. stocks. The company also became the fastest to grow from $1 trillion to $2 trillion in 2024, surpassing Amazon, Google-parent Alphabet, and Saudi Aramco. Despite the increase in share price, a rise in analysts' earnings estimates has led to a decrease in the stock's forward earnings valuation. The company's popularity extends to the derivatives market, with bullish options traders and record-breaking call options volumes.
Key takeaways:
- Nvidia could soon surpass Apple to become the world's second-most valuable company, largely due to the surge in adoption of AI applications.
- Nvidia's stock has nearly tripled in value over the past year to $2.68 trillion, while Apple was last valued at $2.92 trillion.
- Nvidia became the fastest company to grow from $1 trillion to $2 trillion in 2024, surpassing Amazon.com, Google-parent Alphabet and Saudi Aramco.
- Options traders are bullish as Nvidia's volumes, particularly for calls, has picked up in recent sessions after the surge in its stock price.