The ongoing surge in artificial intelligence (AI) has led to many success stories, but few have been as remarkable as the rise of the leading chipmaker Nvidia (NASDAQ: NVDA). Despite being overshadowed by companies like Super Micro Computer (NASDAQ: SMCI) in terms of stock market performance in 2024, Nvidia has emerged as the clear winner in the AI boom, which began with the release of ChatGPT in late 2022.
In just over 20 months, Nvidia’s market capitalization has skyrocketed from under $400 billion to over $3.3 trillion, a growth of almost $3 trillion. By mid-June 2024, the chipmaker even surpassed giants like Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) to become the world’s largest company.
However, such a rapid rise raises questions about what lies ahead for Nvidia, as history shows that major triumphs can sometimes lead to a rapid decline. Despite the potential dangers, the broader AI sector continues to attract significant investor confidence, as evidenced by Apple’s resurgence in the stock market after announcing its integration of OpenAI’s products.
Technical analysis from TradingView indicates that Nvidia’s performance continues to inspire confidence, with moving averages, oscillators, and overall readings remaining stable over the last trading session, week, and month. The only change is a shift from a ‘strong buy’ to a ‘buy’ rating based on the past 7 days of trading.
Analysts are also bullish about Nvidia’s future, with Tigress Capital raising its forecast for NVDA shares from $98.50 to $170 and Wells Fargo (NYSE: WFC) predicting a rise to $155. On the same day, Rosenblatt Securities provided the most optimistic prediction to date, setting a new price target at $200, representing a 47.51% upside from Nvidia’s current stock price of $135.58.
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