Kristina Roberts
Nvidia, a leading company in making advanced computer chips, has reached its highest-ever stock price. This happened after a market expert said that the company is about to benefit greatly from the rising demand for artificial intelligence (AI) technology. The expert called this upcoming phase a “Golden Wave” of AI, meaning that Nvidia is in a perfect position to grow even more because of the increasing use of AI in different industries.
On Wednesday, Nvidia’s stock price went up by more than 4%, reaching a record high of $154.10 per share. Because of this increase, the company’s total market value rose to $3.76 trillion, making it the most valuable company in the world once again. It surpassed Microsoft, which had a market value of $3.65 trillion after its stock went up by just 0.2%. Nvidia, Microsoft, and Apple have been competing for the top spot as the most valuable company over the past year, with each taking the lead at different times.
The reason behind Nvidia’s latest success is the positive outlook given by Loop Capital, a financial analysis firm. They increased their price target for Nvidia’s stock from $175 to $250 and kept their “buy” rating, which means they believe the stock will keep growing. Ananda Baruah, an analyst at Loop Capital, explained in a note to clients that their research shows the world is entering a new and exciting phase of AI adoption. He said, “Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand.” This means Nvidia is expected to see even higher demand for its products as AI technology becomes more widely used.
Nvidia’s recent success is also part of a bigger trend in the stock market, where investors are once again focusing on companies involved in AI. Over the past few years, chipmakers and tech companies related to AI have seen huge growth because people believe AI will change many industries. Even though Nvidia’s stock has already gone up a lot, experts say it is still reasonably priced compared to its expected earnings. Right now, Nvidia’s stock is trading at about 30 times its expected earnings for the next year, which is lower than its average over the past five years. This means that even though the stock price is high, the company’s profits are growing fast enough to justify it.
While Nvidia is doing extremely well, other big tech companies are also performing strongly. Apple’s stock went up by 0.4% on the same day, giving it a total market value of $3.0 trillion. Microsoft, which had briefly taken the lead as the most valuable company earlier in June, is still close behind Nvidia. The competition between these tech giants shows how important AI and advanced technology have become in today’s economy.
Earlier this year, Nvidia’s stock had dropped by more than 60% from its lowest point in April. This was because investors were worried about new global tariffs announced by former President Donald Trump. Tariffs are taxes on imported goods, and they can affect companies that rely on global trade. However, the stock market has since recovered as people expect the government to negotiate trade deals that will reduce the impact of these tariffs. This recovery has helped Nvidia and other tech companies bounce back strongly.
Nvidia’s success is not just about luck—it’s because the company has been a key player in the AI revolution. Their powerful chips are used in data centers, self-driving cars, gaming, and many other AI applications. As more businesses and industries start using AI, the demand for Nvidia’s products keeps increasing. This is why experts believe the company has a bright future ahead.
The rise of AI is changing the world in many ways, from healthcare to entertainment, and Nvidia is at the center of this change. Its technology helps train AI models, process huge amounts of data, and power advanced computing systems. Because of this, Nvidia is not just a chip company anymore—it has become one of the most important companies in the tech industry.
As long as AI continues to grow, Nvidia is likely to keep benefiting. The “Golden Wave” that analysts are talking about could mean even bigger things for the company in the coming years. For now, Nvidia’s record-breaking stock price shows just how much confidence investors have in its future. Whether it stays as the world’s most valuable company or not, one thing is clear: Nvidia is a major force in the AI revolution, and its influence is only getting stronger.
