Shares of microchip designer Nvidia (NVDA) have closed at an all-time high and its market capitalization has reached $3.40 trillion.
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Nvidia is once again the second most valuable publicly traded company in the world, behind only Apple (AAPL), which has a market cap of $3.52 trillion. Nvidia achieved the milestone as its share price rose 2.43% on October 14 to finish trading at $138.07, which is a record high on a split-adjusted basis. NVDA stock split 10-for-1 in June of this year.
The previous all-time high for Nvidia stock was $135.58, achieved on June 18 of this year, shortly after the stock split. NVDA stock had slumped over the summer before rebounding in the past six weeks. Since Sept. 6, Nvidia’s share price has increased 35%. The stock is now up 179% on the year and has risen nearly 10-fold since the beginning of 2023.
NVDA Stock Powered by AI Demand
Nvidia’s share price has been gathering steam in recent weeks as analysts and investors reassess demand for the AI microchips and processors that the company makes. The stock is also rising as earnings season for the year’s third quarter gets underway.
Nvidia’s processors are widely viewed as the most powerful and efficient when it comes to running AI models and applications. The company’s most powerful microchips yet, known as the Blackwell line, have just started to ship. Nvidia executives have characterized demand for the Blackwell chips as “insane.”
Nvidia currently controls about 95% of the market for microchips that are used to train AI, according to analysts at Mizuho Financial Group (MFG).
Is NVDA stock a Buy?
Nvidia stock has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 39 Buy and three Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average NVDA price target of $152.86 implies 10.71% upside from where the shares currently trade.
