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Nvidia (NVDA) Stock Surge Leaves Traders Worried About How Much Higher It Can Go

Mar 27, 2024 - bloomberg.com
Nvidia Corp.'s shares have seen a significant surge since the start of 2023, with a nearly 550% gain, causing even bullish investors to question the sustainability of its growth. Despite the company's real profit and revenue growth and positive sentiment on Wall Street, there are concerns that the rapid increase in share price may have outpaced actual profit growth.

The company has added $2 trillion in value over the past 15 months, becoming one of the largest in the world. However, such rapid growth often anticipates years of profit growth that is yet to be realized, leading to worries about the potential for future growth.

Key takeaways:

  • Nvidia Corp.'s shares have experienced a sudden and strong runup since the start of 2023, causing even bullish investors to question how much further it can go.
  • The company's shares have gained nearly 550% since the start of the previous year.
  • Despite the real profit and revenue growth of Nvidia, such runups usually capture years of profit growth that haven't yet been delivered.
  • Nvidia's stock has become one of the largest in the world, adding $2 trillion in value over the past 15 months.
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