Why Is Nvidia Stock So High, and Can NVDA Become the Biggest U.S. Company?

Barchart02-29

After its well-received earnings report last week, Nvidia (NVDA) joined the ranks of $2 trillion companies, albeit briefly. Nvidia stock soared above $800, which makes it the most expensive “...

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Comments

lars
02-29
lars
Nop
Louis K Jia Heng
02-29
Louis K Jia Heng
Definitely become world biggest US company
MIe
02-29
MIe
Nvidia upside ai data Center Chip revenue

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Nvidia stock soared above $800, which makes it the most expensive “...</p>\n\n<a href=\"https://www.barchart.com/story/news/24354071/why-is-nvidia-stock-so-high-and-can-nvda-become-the-biggest-u-s-company\">Source Link</a>\n\n</div>\n","source":"barchart_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Is Nvidia Stock So High, and Can NVDA Become the Biggest U.S. Company?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Is Nvidia Stock So High, and Can NVDA Become the Biggest U.S. Company?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-29 16:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/24354071/why-is-nvidia-stock-so-high-and-can-nvda-become-the-biggest-u-s-company><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>After its well-received earnings report last week, Nvidia (NVDA) joined the ranks of $2 trillion companies, albeit briefly. Nvidia stock soared above $800, which makes it the most expensive “...</p>\n\n<a href=\"https://www.barchart.com/story/news/24354071/why-is-nvidia-stock-so-high-and-can-nvda-become-the-biggest-u-s-company\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0820561909.HKD","symbol_name":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","start_time":0,"source_url":"https://www.barchart.com/story/news/24354071/why-is-nvidia-stock-so-high-and-can-nvda-become-the-biggest-u-s-company","article_id":"2414225852","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2414225852","pubTimestamp":1709193600,"sourceInfo":{"source_id":"barchart_highlight","name":"Barchart"},"weMediaInfo":null,"summary":"Why Is Nvidia Stock So High, and Can NVDA Become the Biggest U.S. Company?","collect":0,"end_time":0,"defaultTopTitle":"barchart.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0109392836.USD":"富兰克林科技股A","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4581":"高盛持仓","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","NVDA":"英伟达","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4529":"IDC概念","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","BK4579":"人工智能","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","BK4554":"元宇宙及AR概念","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4592":"伊斯兰概念","LU0444971666.USD":"天利全球科技基金","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","BK4567":"ESG概念","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4587":"ChatGPT概念","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4527":"明星科技股","LU0079474960.USD":"联博美国增长基金A","BK4588":"碎股","BK4550":"红杉资本持仓","BK4141":"半导体产品","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0056508442.USD":"贝莱德世界科技基金A2","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4503":"景林资产持仓","LU0080751232.USD":"富达环球多元动力基金A","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4551":"寇图资本持仓","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC"},"translate_title":"为什么英伟达的股票这么高，NVDA能成为美国最大的公司吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVDA":1},"content_text":"After its well-received earnings report last week, Nvidia (NVDA) joined the ranks of $2 trillion companies, albeit briefly. Nvidia stock soared above $800, which makes it the most expensive “Magnificent 7” stock in absolute terms. Tech (Ecommerce, Social Media, etc.) - shutterstock_1742705531The breathless rally in Nvidia stock has now given it a realistic chance of becoming the biggest U.S. company. Currently, only Microsoft (MSFT) and Apple (AAPL) have a market cap larger than Nvidia's, now that the semiconductor designer has surpassed both Amazon (AMZN) and Alphabet (GOOG) in size. Why is Nvidia stock so high, and could it soon become the biggest U.S. company?Why Is Nvidia Stock So High?The key reason Nvidia stock is trading so high, in absolute terms, is because of the artificial intelligence (AI)-fueled price action over the last year. The stock has risen 61% this year, adding to its 240% rise in 2023. The shares have risen 481% over the last three years, which means NVDA is now above the levels where it was trading in 2021 when it split four-for-one.Nvidia has seen a major rerating since the beginning of 2023, thanks to its position as the preeminent supplier of AI chips. While a section of the market might be perplexed by the rise in Nvidia stock, its share price performance has been backed by solid financials.Nvidia forecast revenues of $24 billion at the midpoint for its fiscal Q1 2025, and Wall Street analysts expect its revenues to surpass $100 billion in this fiscal year and $130 billion in the next. To put that in perspective, the Jensen Huang-led company posted revenues of just under $11 billion in fiscal 2020.The company’s revenues have risen six-fold over the last four years, while the commensurate rise in profits has been even higher. In a market where most other credible growth stories – including Tesla (TSLA) – look tarnished in the short term, Nvidia brings to the table prospects of strong double-digit revenue growth with a long track record of execution.Will Nvidia Stock Ever Go Down?Those looking for Nvidia stock to go down meaningfully must have been disappointed, as the stock has continued to make newer highs almost every other day. Notably, despite having risen significantly from its 2022 lows, Nvidia’s valuation still looks far from stretched, based on some metrics. NVDA currently trades at a next 12-months (NTM) price-to-earnings multiple of 32.1x, and among its “Magnificent 7” peers, only Meta Platforms (META) and Apple trade at a lower multiple.Wall Street analysts also expect Nvidia’s rally to continue, and it has a consensus rating of “Strong Buy” from analysts. According to Reuters, at least 17 brokerages raised Nvidia’s target price after the company reported its fiscal Q1 earnings last week. UBS, however, was a notable exception, as the brokerage cut Nvidia’s target price from $850 to $800 on “some potential slowing in revenue growth.\"Could NVDA Become The World’s Largest Company?Nvidia’s new Street-high target price of $1,400 (via Rosenblatt Securities) implies its market cap rising to $3.5 trillion, which is higher than the current market cap of Microsoft – the reigning largest U.S. company. While you might have been ridiculed just a few years back for talking about the possibility of Nvidia becoming the world’s biggest company, it looks like a real possibility now. A cursory look at how the biggest U.S. companies have evolved would tell us that winners have changed over the years in line with their financial performance as well as shifting market sentiments. For instance, at the beginning of 2000, Microsoft was the biggest U.S. company - but soon lost that position to General Electric (GE). Between 2005 and 2011, oil major ExxonMobil (XOM) was the biggest U.S. company, for the most part.Apple became the world’s most valuable company in 2011, and the iPhone maker has largely held on to that position since then, aside from a few brief incursions. However, Apple lost its $3 trillion market cap and status as the world’s largest company to Microsoft last month, and has failed to reclaim the top position as of yet.Incidentally, CEO Elon Musk believes that Tesla will someday become the world’s biggest company. While Musk is known for his flamboyant claims, including about Tesla’s roadmap to full autonomy, the fact remains that stock market winners have changed, and will continue to do so in the future.Damodaran Believes Nvidia Is Quite Overvalued Nvidia currently has momentum, and the market sentiments are even more positive after the fiscal Q4 earnings call last week.At the same time, a section of the market – which includes valuation guru Ashwath Damodaran – believes that the rise in Nvidia stock has gone too far. While the “dean of valuation” believes almost the entire “Magnificent 7” is overvalued, he singled out NVDA in particular.To be sure, the kind of multiples that Nvidia now trades at don't make the stock a good fit for value investors like Damodaran. However, for those chasing growth, I believe Nvidia is a long-term buy-and-hold story that has a chance to become the biggest company someday.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":279250303451400,"gmtCreate":1709197808767,"gmtModify":1709197812722,"author":{"id":"4123975168941882","authorId":"4123975168941882","name":"lars","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4123975168941882","authorIdStr":"4123975168941882"},"htmlText":"Nop&nbsp;","listText":"Nop&nbsp;","text":"Nop","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/279250303451400","repostId":2414225852,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":279239125319832,"gmtCreate":1709195217504,"gmtModify":1709195222188,"author":{"id":"3560307510640662","authorId":"3560307510640662","name":"Louis K Jia Heng","avatar":"https://static.tigerbbs.com/05bb06bcca1cb9cd5016f4c8230c2803","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":7,"crmLevelSwitch":0,"idStr":"3560307510640662","authorIdStr":"3560307510640662"},"htmlText":"Definitely become world biggest US company&nbsp;","listText":"Definitely become world biggest US company&nbsp;","text":"Definitely become world biggest US company","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/279239125319832","repostId":2414225852,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":279232859312128,"gmtCreate":1709193660730,"gmtModify":1709193665153,"author":{"id":"3577182936341023","authorId":"3577182936341023","name":"MIe","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":6,"crmLevelSwitch":0,"idStr":"3577182936341023","authorIdStr":"3577182936341023"},"htmlText":"Nvidia upside ai data Center Chip revenue&nbsp;","listText":"Nvidia upside ai data Center Chip revenue&nbsp;","text":"Nvidia upside ai data Center Chip revenue","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/279232859312128","repostId":2414225852,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":15,"commentSize":3,"repostSize":3,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2414225852"}