This article first appeared on GuruFocus.
Oct 9 – Nvidia (NASDAQ:NVDA) climbed more than 2.5% to a record high of $193, pushing its market capitalization to about $4.6 trillion. The chipmaker’s strong momentum reflects a 72% jump in revenue over the past year, driven by expanding demand in artificial intelligence and gaming.
The stock’s valuation remains elevated, trading at a price-to-earnings ratio of about 54, suggesting investors are paying a premium for Nvidia’s growth prospects. Moreover, about 29 analysts have raised their earnings forecasts for the company’s upcoming reporting period.
Analyst sentiment has strengthened further after Cantor Fitzgerald lifted its price target to $300, citing Nvidia’s deepening role in AI infrastructure. The brokerage’s note followed discussions with Nvidia executives about the firm’s next phase of AI platform expansion.
Nvidia’s ecosystem continues to widen as partners ramp up collaborations. Hoth Therapeutics (NASDAQ:HOTH) expanded its research capabilities with a new Nvidia AI Enterprise subscription, while PubMatic (NASDAQ:PUBM) reported a fivefold boost in ad-processing speed from Nvidia-powered systems.