NVIDIA Corporation (NVDA.US) market value surpasses $5 trillion. Analysts discuss whether the rising trend can continue.

On Wednesday, NVIDIA Corporation (NVDA.US) became the first listed company in the world with a market value exceeding $5 trillion, and its rapid growth momentum has firmly established it at the core of the global artificial intelligence (AI) revolution. During the trading day, NVIDIA Corporation's stock price rose over 5%, reaching a historical high of $212.19. By the close, NVIDIA Corporation's stock price had risen by 3% to $207.04, with a market value of $5.03 trillion, representing a gain of over 50% so far this year. Since the launch of ChatGPT in November 2022, NVIDIA Corporation's stock price has increased by about 11 times. The introduction of ChatGPT is seen as a key trigger point driving the growth phase of the AI industry. In comparison, since November 2022, the S&P 500 index has risen by about 70%. After NVIDIA Corporation's market value surpassed $5 trillion, investors undoubtedly eagerly want to know how much further upside potential there is for the stock. Overall, analysts have a positive attitude towards the market value milestone achieved by NVIDIA Corporation and the future direction of its stock price. Here is a summary of analyst viewpoints: Matt Britzman, Senior Stock Analyst at British financial services provider Hargreaves Lansdown: NVIDIA Corporation crossing the $5 trillion market value milestone is not only a milestone but also a statement, as this company has transformed from a chip manufacturer to an industry creator. "For investors who think they have missed the boat, even with a $5 trillion market value, this stock is still not too expensive. The market still underestimates the scale of its development opportunities, and NVIDIA Corporation remains one of the best targets for investing in the AI theme." Kim Forrest, Chief Investment Officer at consulting firm Bokeh Capital Partners under American Financial Group, Inc.: "NVIDIA Corporation totally deserves this victory parade. It seems that the huge AI bubble is far from bursting. So we see results like this: a $5 trillion company because it produces products that drive the development cycle of AI. "The demand for data center construction seems to be very strong, and this demand repeatedly points to NVIDIA Corporation." Michael Brown, Senior Research Strategist at Pepperstone, a global financial services provider: "In many ways, everything has gone well for NVIDIA Corporation in the past 24 hours. All these strategic partnerships were announced yesterday, and CEO Jensen Huang provided very steady guidance, talking about a $500 billion business over the next five quarters." "One key driver of whether NVIDIA Corporation can further expand these revenues will depend on the capital expenditure expectations of these large tech companies. If capital expenditures increase significantly again, as they did in the second quarter, and much of it obviously will be used for NVIDIA Corporation's chips, then there is absolutely no reason for its upward momentum to stall." Arthur R Hogan III, Chief Market Strategist at B. RILEY, a service company under American Financial Group, Inc.: "This milestone reinforces the fact that this chip manufacturer is clearly a winner in the AI revolution stage. Importantly, NVIDIA Corporation's market value surge is accompanied by a reasonable valuation. The company's stock price is 35 times expected earnings for the next 12 months, with a gross margin as high as 70%." "While the $5 trillion milestone seems unimaginable in historical context, behind this achievement, the company has exceeded expectations in all indicators, successfully collaborated with all key players in the industry, and successfully navigated the complex political environment." Daniela Hathorn, Senior Market Analyst at Capital.com, a globally renowned online trading platform: "The factors driving the rise in NVIDIA Corporation's stock price are, on the one hand, the overall market's optimism and frenzy. It is not just NVIDIA Corporation, but major stock indices are also continuously hitting new highs, and I believe this is not accidental. Behind it is a combination of fundamental factors: easing inflation pressures and prospects of loose monetary policies." "At the same time, we are also experiencing a capital spending boom driven by AI specifically in the chip sector and hardware and cloud infrastructure sectors. Therefore, I believe the current growth is not just a cyclical rebound, but a long-term trend with structural growth logic. In a sense, the AI bubble that people are talking about is not really a bubble because it has fundamental support, frankly, profit growth support." Ipek Ozkardeskaya, Senior Market Analyst at Swiss bank UBS: "NVIDIA Corporation has huge potential to make more deals such as partnering with Nokia Oyj Sponsored ADR. The question is not whether NVIDIA Corporation will establish new partnerships, but who the next partner will be. They are expanding internationally, and we believe this international expansion will help alleviate market concerns about 'business cycle dependence.'" David Russell, Director of Global Market Strategy at American online brokerage firm TradeStation: "This is just the culmination of years of accumulation. This bull market is not happening out of thin air; it stems from Jensen Huang and his long-term vision for dedicated processors, which later evolved into chip technology driving the AI revolution. And I think, just as Microsoft Corporation and Intel Corporation led the tech boom when personal computers (PCs) emerged in the 1990s, it is only natural for NVIDIA Corporation to ascend to the $5 trillion valuation throne in 2025." This article is reprinted from "Cailianshe," author: Bian Chun; Editor: Feng Qiuyi.