Nvidia's valuation has risen from $360 billion to $1.83 trillion in the past 13 months, making it a dominant player in the Big Tech market. The company's stock has increased by over 400% since the start of 2023, largely driven by its role as the leading producer of graphics processing units for AI applications. Kathleen Brooks of online broker XTB suggests that Nvidia's valuation surge could continue if AI is indeed the next industrial revolution.
Key takeaways:
- Wall Street's excitement about Nvidia has reached a fever pitch as its valuation soars, surpassing that of both Amazon and Google's owner, Alphabet.
- Big-name investors like Ray Dalio and Paul Tudor Jones have significantly increased their stakes in Nvidia in the last quarter of 2023.
- Some investors, including Carolina Panthers owner David Tepper, are more bearish on the stock, with concerns that the recent surge won't last.
- Nvidia's massive surge in shares, from $360 billion to $1.83 trillion over the past 13 months, has been largely fueled by the company's dominance in the production of graphics processing units for artificial intelligence.