Nvidias stock achieves record high hitting 1200 for the first time

Nvidia, a semiconductor powerhouse, has achieved a groundbreaking milestone by surpassing a stock price of $1,200 for the first time in history. The company’s market capitalization has soared to an impressive $2.95 trillion, coming within 3% of overtaking Apple as the world’s most valuable public company.

Currently, Nvidia’s stock is trading at $1,198.48 per share, marking a 1.56% increase in the last 24 hours. In 2024 alone, Nvidia has added a remarkable $1.8 trillion to its market cap, exceeding the total market value of Tesla three times over. Furthermore, Nvidia’s year-to-date market cap gains outshine the combined market caps of Walmart, Tesla, and JP Morgan.

Nvidia’s stock reached an all-time high value on June 5, as reported by The Kobeissi Letter. The company’s success is attributed to its significant role in the artificial intelligence (AI) revolution, with its high-end chips being crucial for virtually all AI applications. This has led to Nvidia becoming the biggest beneficiary of the AI adoption wave, resulting in its stock nearly tripling in value over the past year.

In contrast to Apple, which has recently lost its top spot to Microsoft, Nvidia continues to ride the wave of growth, from gaming to crypto, and now AI. Nvidia’s dominance has had a significant impact on the S&P 500 and Nasdaq, contributing to over a third of the S&P 500 gains this year. The company’s rapid growth from $1 trillion to $2 trillion in 2024 has surpassed other tech giants like Amazon, Alphabet, and Saudi Aramco.

Despite the soaring share price, Nvidia’s ability to consistently surpass Wall Street’s revenue and profit expectations has led to a decrease in its forward earnings valuation. Its popularity extends to the derivatives market, with the GraniteShares 2x Long NVDA Daily ETF becoming the largest single-stock exchange-traded fund.

As a leader in AI computing, Nvidia’s innovative technology plays a crucial role in the AI boom. Its GPU and DPU products are essential for accelerating AI workloads, enabling businesses and researchers to leverage AI for various applications, from autonomous vehicles to healthcare. With the demand for AI applications on the rise, Nvidia is well-positioned to maintain its leadership and shape the future of technology.

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