To The Moon

After a 300-fold increase in share price over the past decade, the AI giant $NVIDIA Corp(NVDA)$ has finally ascended to the throne of "Global Stock King."

$5 trillion next year?

Nvidia's stock price has soared over 200% in the past year, but one optimistic analyst believes the best is yet to come, predicting a market cap of nearly $5 trillion next year.

Hans Mosesmann, an analyst from Rosenblatt Securities, raised the chipmaker's target price from $140 to a whopping $200 on Tuesday. Nvidia surged 4.1% on that day, hitting an all-time high and becoming the world's most valuable company.

Nvidia first broke through the $3 trillion market cap mark earlier this month, surpassing even $Apple(AAPL)$ . This leap in market cap is a testament to the market potential of AI technology and the immense interest of investors.

It took Nvidia just 96 calendar days to soar from $2 trillion to $3 trillion. Compare that to $Microsoft(MSFT)$ 's 945 days and Apple's 1,044 days, according to Bespoke Investment Group.

Increased 9x in 17 mths!

Nvidia's share price has increased more than ninefold since the end of 2022, soaring 164.5% this year as of Monday, June 16. This growth is driven by its dominance in the AI chip market, especially in data centers, where Nvidia holds about 80% of the market share.

Despite Nvidia's rapid market cap growth, the company is still not part of the $DJIA(.DJI)$ . But its stock split plan could increase the likelihood of inclusion, as the Dow is a price-weighted index, and higher-priced stocks have a greater impact on the benchmark index.

Jensen Huang once said that Nvidia is not just a chip company; it's an AI supercomputer company, an AI infrastructure company, and an AI factory company. That's Nvidia's unique selling point.

Analyst opinions

Many investment analysts echo this sentiment.

Daniel Ives, an analyst at Wedbush Securities, noted in a report that he believes Nvidia, Apple, and Microsoft will be the focal points of the tech industry's race to a $4 trillion market cap in the next year.

Michael Lippert, Vice President and Portfolio Manager at Baron Capital Inc., emphasized that Nvidia is not just a chip sales company; they provide systems, and the company's proprietary software and development ecosystem are key factors in its success.

Sell shares for cash

On June 17, Nvidia dropped another bombshell: Jensen Huang sold Nvidia shares again after nine months. According to the latest regulatory filing, Huang cashed out $31.2 million through a series of internal transactions, selling 240,000 shares from June 13 to 14.

Huang activated a so-called 10b5-1 trading plan on March 14 this year, allowing him to sell up to 6 million Nvidia shares by March 31, 2025.

Apart from Huang, Nvidia's Executive Vice President Deborah Shoquist also sold 41,140 shares on June 3, 2024, cashing out over $45 million.

Other Nvidia executives who have sold shares in recent weeks include Dawn Hudson, Tench Coxe, John Dabiri, Michael McCaffery, Brooke Seawell, and Mark Stevens, who have sold varying numbers of Nvidia shares.

But let's not forget, as of March 25, 2024, Huang still holds nearly 93.5 million Nvidia shares, accounting for 3.8% of the company's total shareholding. Nvidia is on a roll, and it's not slowing down anytime soon!