Nvidia (NVDA) has seen its market value balloon to a staggering $4.4 trillion, which puts the semiconductor giant well ahead of nearly every other public company. To understand just how massive that is, consider that Nvidia is worth about $1.4 trillion more than the combined market capitalization of all 2,000 companies in the Russell 2000 index (IWM). This not only highlights Nvidia’s incredible scale but also the growing gap between tech mega-caps and the broader small-cap market.
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What makes Nvidia’s rise even more significant is just how important it has become to global investment portfolios. In fact, the company is currently included in 667 different exchange-traded funds (ETFs) that use both passive index and actively managed strategies. As a result, these ETFs collectively own approximately 3.6 billion shares of Nvidia, thereby making it one of the most widely held stocks in the world.
This level of exposure is due to Nvidia’s critical role in exciting technologies like artificial intelligence, data centers, and high-performance computing, which has led to a high level of investor confidence. However, it is worth noting that competition is heating up, and Nvidia will need to continue investing heavily in research and development in order to stay ahead. Otherwise, its massive size could end up creating a massive drag on all the portfolios that hold its shares.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $191.26 per share implies 5.5% upside potential.
