Nvidia Corp (NASDAQ:NVDA) shares closed up 0.8% at $138 on Friday, taking its market capitalization to over $3 trillion, but the stock can go higher, according to bullish experts.
Expert Commentary: Ram Ahluwalia, CEO of Lumida Wealth Management is reportedly optimistic about the company touching a $4 trillion valuation.
"There's no question about it. The demand for GPU chips is strong, and you're seeing early adopters starting to get some ROI," Ahulwali told Yahoo Finance.
T. Rowe Price portfolio manager Tony Wang also reportedly shares the confidence.
"You've got several more years of AI investment before you hit saturation or a more maturing AI landscape," according to Dan Niles, founder of Niles Investment Management. "You'll see Nvidia's revenues double over the next several years, and I think you'll see the stock double over the next several years," Niles told Yahoo Finance.
"...demand for Inference compute could grow exponentially as model builders (such as OpenAI) solve for high throughput and low latency. Importantly, supported by its full-stack approach, we believe Nvidia is well-positioned to capture this growth opportunity in Inference," according to Goldman Sachs, as reported by the Financial Times. Sachs has a price target of $150 for the stock.
Bofa Securities on Friday maintained their 'Buy' rating on the stock and increased its price target for the company from $165 to $190.
In fact, Nvidia has a consensus price target of $234.49 based on the ratings of 38 analysts.
Why It Matters: Nvidia stock is up by nearly 186.5% year-to-date, according to data from Benzinga Pro. The company now has a market cap of about $3.39 trillion.
As of its current valuation, Apple is the only American company with a market cap higher than Nvidia. However, even Apple's valuation is short of $4 trillion ($3.57 trillion).
Nvidia stock has surged more than 233% over the past year, with its share price jumping from $41 to $138. Meanwhile, ETFs tracking Nvidia, such as GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) and Direxion Daily NVDA Bull 2X Shares (NASDAQ:NVDU), have delivered gains of at least 440% during the same period.
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