Nvidia Reaches Record High Share Value
Nvidia’s stock surged to an all-time high on Wednesday, closing at $154.31 and elevating the company’s market value to $3.77 trillion. This impressive rise allowed Nvidia to reclaim its title as the world’s most valuable company, though some suggest the competition isn’t finished yet.
The momentum continued on Thursday, with shares climbing around 1% to $155.
This recent rise marks a strong comeback for Nvidia, which had faced challenges earlier in the year, including competition from the Chinese AI release and issues related to tariffs.
Interestingly, one analyst noted that this is just the beginning of a bigger trend.
Loop Capital’s Anandavaru has raised Nvidia’s price target to $250—an assertive stance among those bullish on AI. This estimate reflects a potential surge of 127% and a market cap reaching $6 trillion.
“Math Works Out”
Barua suggests that a $6 trillion market cap might seem ambitious, but “math just works.” If you believe in substantial investments in AI infrastructure, brace yourself for even greater demand for high-performance equipment.
Loop Capital has identified a significant increase in data center spending as giants like Amazon and Microsoft ramp up their technological investments.
They project that by 2028, the share of non-CPU workloads in hyper-scalar environments will jump from about 15% to between 50% and 60%, resulting in heightened spending on GPUs and AI accelerators.
Their research predicts that spending on AI and hyper-scaled computing could soar to approximately $2.0 trillion by 2028, based on current computing economic patterns.
Nvidia also anticipates a rise in the demand for specialized data centers designed for training AI models. Loop Capital’s forecast indicates a growing requirement for gigawatts in the next couple of years.
Nvidia’s CEO, Jensen Huang, stated that this demand could translate to revenue between $40 billion and $50 billion, hinting at a potential range of $450 billion to $900 billion in revenue down the line.
Moreover, contemporary AI models are proving to be considerably more computationally demanding and expensive, sometimes requiring up to 150 times more calculations than traditional large language models (LLMs). This escalation is prompting major tech corporations to increase their investments in NVIDIA’s AI server systems.
Barua is optimistic that Nvidia’s data center revenues will skyrocket, expecting them to grow from $115 billion in 2025 to $367 billion by 2028. He believes that Nvidia is in a prime position to capture a significant share of that market.
“We are experiencing the next ‘golden wave’ after adoption,” Barua noted. “Nvidia is poised for an unprecedented level of demand.”
