In the ranking of the 10 largest companies in the world by market capitalization, the microchip development company is hot on the heels of the e-commerce giant.
The actions of Nvidia Corp has risen so much this year (+33.3%) that it now threatens to overtake Amazon and become the fifth most valuable American company by market capitalization. Today, after going head to head between the e-commerce firm and the microchip firm, Nvidia shares climb 5.6% before market openingwhich adds to the escalation of the week, which is 10.5%. Unbeatable.
Having added almost all of Tesla’s market capitalization in the last two months alone, Nvidia is worth $1.72 trillionjust below Amazon, with 1.76 billion, at the close of Thursday. Alphabet, owner of Google, The third most valuable American company after Microsoft Corp. and Apple Inc. is not far behind, at $1.82 trillion.
Nvidia: the fundamental
Nvidia’s extraordinary rise sets new levels of hyperbole on Wall Street, as analysts have raced against each other to repeatedly raise their earnings estimates and stock forecasts, including, in the last week, Morgan Stanley and Bank of America. Its shares have risen another 45%, or $500 billion, since the beginning of the year, putting it close to obliterating Amazon and Alphabet, as previously stated.
However, even after the last rise, Nvidia may still be reasonably valued. With earnings estimates rising almost as fast as the stock, shares now trade at about 30 times this year’s expected earnings, still modest compared to their historical average and decidedly cheap for a company in the midst of two years of growth which is expected to quadruple its income.
The huge swings in market sentiment around Nvidia They are an object lesson in the difficulty of evaluating the benefits of a new technological market potentially massive, with a risk of underestimation as great as that of overestimation.
It is far from clear, for example, whether generative AI will be as transformative as its proponents claim.
Despite ChatGPT’s viral success, it doesn’t look like it’s going to become the kind of disruptive consumer app capable of creating a massive new online market, like Internet search or social media. And in the business world, Most companies are still in the early phase of evaluating whether the technology will boost productivity or open new markets. Is The gigantic wave of investment flooding this field – and which has boosted Nvidia’s fortunes – is likely to dry up quickly if those benefits do not begin to materialize this year.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
