In just 67 days since the onset of 2024, Nvidia (NVDA) has significantly bolstered its market value by over $1 trillion.
On Thursday, shares surged by over 4% to reach $926, propelled by Mizuho Securities elevating its price target by 17% to $1,000. These gains propelled Nvidia’s market capitalization to $2.28 trillion, a notable surge from its $1.22 trillion valuation at the conclusion of 2023.
The ascent of the chip manufacturer’s stock has been remarkable over the past eighteen months, largely fueled by the burgeoning demand for artificial intelligence and the prevalent utilization of Nvidia’s graphics processing units, often integral in AI training and operations.
Within the span of this year alone, Nvidia shares have witnessed an impressive ascent of more than 85%. The company garnered extraordinary attention in February when it recorded a historic single-day addition of $272 billion in market value following its earnings outperforming the lofty expectations set by Wall Street.
Nvidia’s remarkable trajectory stands in stark juxtaposition to the recent challenges faced by some of its industry peers, particularly Tesla (TSLA) and Apple (AAPL).
Tesla has grappled with a deceleration in demand for electric vehicles alongside heightened competition in critical markets such as China, prompting manufacturers to implement price reductions. Consequently, Tesla’s shares have tumbled by nearly 25% this year, resulting in a depletion of over $225 billion from its market capitalization, which currently stands at $562 billion.
Similarly, Apple has encountered setbacks attributed to a slowdown in China, where iPhone sales have underperformed thus far in the year. Moreover, the company recently terminated its electric vehicle initiative and has encountered challenges in persuading investors of the potential success of its latest offering, the Apple Vision Pro augmented reality headset, in replicating the groundbreaking achievements of products like the iPhone and iPad. As a result, Apple shares have undergone a decline of approximately 12% this year, resulting in a reduction of over $380 billion from its market capitalization, previously the world’s largest, exceeding $3 trillion.
