Shenzhen Business Daily · Creative App Reporter Zhong Guobin
On November 5th Eastern Time, the three major US stock indices rose by over 1%. As of the close, the Dow Jones Industrial Average rose 1.02%, the Nasdaq rose 1.43%, and the S&P 500 index rose 1.23%. Chip giant Nvidia rose 2.84%, with a total market value of $3.432 trillion, surpassing Apple Inc.'s $3.378 trillion and becoming the world's largest company by market value.
Since the beginning of this year, Nvidia's stock price has risen by a cumulative 182.58%, far exceeding the gains of the seven tech giants in the US stock market. Among them, Apple's stock price has risen by 16.50% this year.
It is worth noting that Nvidia is the world's first chip company with a market value exceeding $3 trillion, the world's first Chinese founded company with a market value of $3 trillion, and also the fastest growing technology company with a market value of $3 trillion.
Every time, Nvidia's A-share "old irons" can also follow suit, no matter whether it is accelerating the rise of its share price, new product release, or industry data exceeding expectations.
In the latest speech, Nvidia founder Huang Renxun stated that Nvidia is building an "AI brain" and will have 100 million artificial intelligence assistants in the future
What is the concept of Nvidia's market value reaching $3.432 trillion? 3.432 trillion US dollars. "This is equivalent to 8.7 times the market value of 18 Alibaba, 7 Tencent, 12 Maotai, and even Intel+AMD combined. This is the terrifying market value of Nvidia.
Nvidia's market value has skyrocketed and surpassed Apple, due to the arrival of the global AI era.
Looking back at NVIDIA's journey to the top, the speed of its stock price increase is remarkable.
More than a year ago, Nvidia's market value had not yet reached the $1 trillion threshold, ranking behind tech giants such as Google, Amazon, Apple, and Microsoft.
Afterwards, Nvidia's market value increased from $1 trillion to $2 trillion in just a few months; From $2 trillion to $3 trillion, it only took 96 days.
Specifically, in 2020, 2021, 2022, and 2023, Nvidia's stock price increased by 124%, 126.1%, -50.35%, and 239.60% respectively; Since 2024, the stock has risen by 182.58%.
Comparison shows that Nvidia's market value increased from $2 trillion to $3 trillion, with Microsoft taking 945 days and Apple taking 1044 days. Nvidia's "speed" is visible to the naked eye.
What is the potential of NVIDIA after reaching the summit?
Bank of America stated in its latest report that it expects Nvidia's stock price to rise further, from the previous $165 to $190, which means the stock still has 36% upside potential compared to the latest closing price of $139.91 per share.
Bank of America analysts Vivek Arya, Duksan Jang, and others also stated that buying Nvidia is a "once-in-a-generation opportunity" and believe that Nvidia's valuation is still attractive, as its 2025 PEG index (price to earnings ratio/year-on-year compound growth rate of earnings per share) is only 0.6 times, far below the average of 1.9 times for other companies in Mag 7. Bank of America predicts that by 2027, Nvidia's earnings per share will increase more than five times to $5.67, and the price to earnings ratio will drop to a milder 24 times.
Goldman Sachs also believes that Nvidia has a strong "moat", including a huge user base, innovative capabilities in the chip and data center fields, and powerful and constantly growing software products. Considering the current strong demand for AI, it is expected that Nvidia's chip supply will remain tight in the foreseeable future. Goldman Sachs expects that the growth of Blackwell based products will continue as planned, with revenue reaching billions of dollars by the first quarter of next year and further growth expected in April and beyond.