Nvidia Soars to Record High as Analyst Predicts AI Golden Wave
Nvidia's stock hit a record $154.10, pushing its market cap to $3.76 trillion, overtaking Microsoft. AI demand drives optimism, with price targets raised to $250.
Nvidia Surges to Record High as AI Growth Sparks Optimism
Nvidia's stock soared to a new peak, reclaiming its position as the world's most valuable company. Shares climbed over 4% to reach $154.10, pushing Nvidia's market capitalization to $3.76 trillion and surpassing Microsoft's $3.65 trillion valuation.
Analyst Boosts Price Target Amid AI Demand
Loop Capital raised its price target on Nvidia from $175 to $250 while maintaining a "buy" rating. The firm highlighted that Nvidia stands at the forefront of a new wave of artificial intelligence adoption, which they call the "Golden Wave." This surge in demand for high-end AI processors is expected to drive stronger-than-anticipated growth.
Market Context and Valuation
Nvidia's rally reflects renewed investor interest in AI-driven tech stocks. Despite the strong share price gains, Nvidia trades at about 30 times expected earnings over the next 12 months—below its five-year average of roughly 40 times. This indicates that earnings forecasts have steadily increased alongside the stock price.
Shifting Leadership Among Tech Giants
Over the past year, Nvidia, Microsoft, and Apple have alternated as the world's most valuable companies. Microsoft recently led after overtaking Nvidia in early June. Apple’s valuation also rose slightly to $3.0 trillion. Nvidia has rebounded more than 60% since early April, recovering from market concerns linked to global tariff announcements.
- The S&P 500 technology sector index reached an all-time high, up 0.9% recently and nearly 6% so far in 2025.
- Investor optimism is supported by expectations of easing trade tensions and continued AI-driven growth.
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