Nvidia’s incredible ascent since late 2022 has been well-earned, given its vital role in the current artificial intelligence (AI) boom. However, it has also disrupted standard stock market norms. It took Apple, known for its remarkable performance, over a decade to increase its market capitalization from around $400 billion to approximately $3 trillion. In contrast, the esteemed chipmaker achieved this feat in less than two years.
During trading on June 5, Nvidia reached another milestone by surpassing Apple to become the world’s second-largest company, though this ranking changed by June 7. Could Nvidia potentially surpass the size of Germany’s economy?
Market expert Louis Navellier believes that despite Nvidia’s impressive growth, the company still has significant room for expansion. He predicts that Nvidia will soon aim for an unprecedented market cap of $5 trillion. This would make Nvidia larger than the GDP of most countries, except for the U.S. and China.
Navellier anticipates that part of this growth will be fueled by acquisitions, as Nvidia, along with Apple and Microsoft, are well-positioned to absorb smaller companies with innovative ideas and technologies due to their existing AI investments and infrastructure.
Unlike some market experts who view the current AI industry as a bubble, Navellier disagrees with this assessment. Examining Nvidia’s performance over the last 52 weeks, it seems that the bullish forecast is justified. The stock has been steadily rising since the AI boom began, particularly with the release of OpenAI’s ChatGPT platform.
In the past year, Nvidia’s stock has surged by 213%, with a strong start to 2024 as shares are up by 150.61% since January 2. It is essential to note that the information on this site should not be construed as investment advice, as investing always carries risks to your capital.
