NVIDIA has initiated the new year with its most robust performance ever, marking a remarkable continuation of its staggering surge that propelled shares to a nearly 240 percent gain in 2023.
The tech company, often hailed as an artificial-intelligence (AI) pioneer, has witnessed an exceptional uptick of around $128 billion in market capitalization within the first ten days of trading this month. This unprecedented surge underscores NVIDIA’s dominance as a major player in the AI sector and suggests a sustained momentum in the AI trend, at least for a company widely recognized as one of the early frontrunners.
Nvidia expected to report another big revenue jump next month
NVIDIA’s remarkable performance in the current year is surpassing the broader market and even outpacing other major technology stocks among the so-called Magnificent Seven megacaps. This success stands out amidst the S&P 500 Index, which has faced stagnation near record highs amid uncertainties surrounding corporate profits and the anticipated timing of Federal Reserve interest-rate adjustments.
Shana Sissel, CEO of Banrion Capital Management, expressed confidence in NVIDIA, describing it as the “best of breed.” She highlighted the company’s market dominance, strong customer relationships, and rapid growth, stating, “It’s hard to find a lot of holes in the story.”
While company experienced a more favorable start in terms of percentage gains last year, it is important to note that those gains followed a significant loss of half its stock value in 2022. Looking ahead, analysts covering NVIDIA project an average target price of almost $650 for the next 12 months, indicating a potential 19 percent upside. This positive outlook comes at a time when the company’s market capitalization has exceeded $1.3 trillion
