{"id":600315,"date":"2025-06-26T08:04:57","date_gmt":"2025-06-26T06:04:57","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=600315"},"modified":"2025-06-26T08:08:50","modified_gmt":"2025-06-26T06:08:50","slug":"nvidia-hits-all-time-high","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/ai\/600315-nvidia-hits-all-time-high.html","title":{"rendered":"Nvidia hits all-time high"},"content":{"rendered":"\n

Nvidia shares rose to an all-time high on Wednesday, with the leader in artificial intelligence chips extending an advance that has cemented its position as one of the most valuable companies in the world.<\/p>\n\n\n\n

The stock rose 4.3% to $154.31 (R2,730), taking out an all-time high that has stood since January. The record is only the latest milestone for the company, which has risen 63% off an April low, a rally that has added nearly $1.5 trillion (R27 trillion) to its market capitalisation.<\/p>\n\n\n\n

With the day\u2019s gain, Nvidia stands as the world\u2019s largest stock, with a market cap of about $3.77 trillion, overtaking Microsoft at $3.66 trillion.<\/p>\n\n\n\n

Recent earnings from Nvidia were a notable catalyst for bulls, as the report showed robust growth and pointed to more strength ahead despite the impact of restrictions on the sales of advanced semiconductors in China. <\/p>\n\n\n\n

Prints from Microsoft, Meta Platforms, Alphabet, and Amazon.com \u2014 which together make up more than 40% of Nvidia\u2019s revenue, per supply chain data compiled by Bloomberg \u2014 further underlined how the company\u2019s biggest customers continue to spend aggressively building out their AI infrastructure.<\/p>\n\n\n\n

\u201cMy confidence in Nvidia\u2019s growth is higher than it was a couple months ago, and it seems the AI arms race will continue through 2025 and probably 2026,\u201d said Michael Smith, co-portfolio manager at Allspring Global Investments. <\/p>\n\n\n\n

\u201cThe momentum has clearly been re-established, and Nvidia\u2019s moat has only widened and deepened, meaning its position has only strengthened.\u201d<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

At Nvidia\u2019s shareholder meeting Wednesday, Chief Executive Officer Jensen Huang reassured investors that demand remains strong. <\/p>\n\n\n\n

He reiterated his view that the computer industry is only at the beginning of a massive AI infrastructure upgrade.<\/p>\n\n\n\n

Little known just a few years ago, Nvidia has emerged as a household name and perhaps the most important stock on Wall Street by becoming the poster child for all things AI. <\/p>\n\n\n\n

The shares\u2019 gain of 15% this year follows a rally of more than 170% in 2024, which itself came in the wake of 2023\u2019s surge of nearly 240%.<\/p>\n\n\n\n

Even with this strength, it continues to screen as attractive next to its history by some valuation metrics. <\/p>\n\n\n\n

Nvidia trades at 31.5 times expected 12-month earnings, below its 10-year average and not far from the Nasdaq 100 Index\u2019s multiple of 27 \u2014 despite Wall Street estimates calling for faster growth at Nvidia than the broader tech market. <\/p>\n\n\n\n

The stock\u2019s PEG ratio \u2014 a measure of valuation relative to growth \u2014 is at about 0.9, by far the lowest among the Magnificent Seven.<\/p>\n\n\n\n

The combination of high growth and a reasonable multiple is a key reason why Wall Street remains optimistic about its prospects. <\/p>\n\n\n\n

Nearly 90% of the analysts tracked by Bloomberg recommend buying the stock, while it trades 12% below the average analyst price target, suggesting many expect the momentum to continue.\u00a0<\/p>\n\n\n\n

Despite all that, Nvidia remains under-owned by market professionals relative to other Big Tech peers, an additional sign there is potential for more buying in the weeks to come. <\/p>\n\n\n\n

Nvidia is owned by 74% of long-only funds, according to data from Bank of America. <\/p>\n\n\n\n

This puts it behind Amazon, Apple and Microsoft, which is the most owned at 91%.\u00a0<\/p>\n\n\n\n

\u201cI\u2019m bullish on this year and next, but like everyone else we don\u2019t know what will happen after that,\u201d said Smith. <\/p>\n\n\n\n

\u201cThe stock doesn\u2019t look expensive, but there can be a limit to how much upside there is in one of the biggest companies in the world. Ultimately the duration of Nvidia\u2019s growth will depend on how long its customers increase their investments in AI. If they slow their spending, it won\u2019t take much to see a big shift in volatility.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The leader in AI chips extended an advance that has cemented its position as one of the most valuable companies in the world.<\/p>\n","protected":false},"author":341034,"featured_media":576075,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[92837],"tags":[605,35793,76672,123,3838],"class_list":["post-600315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","tag-apple","tag-artificial-intelligence-ai","tag-jensen-huang","tag-microsoft","tag-nvidia"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600315"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=600315"}],"version-history":[{"count":3,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600315\/revisions"}],"predecessor-version":[{"id":600327,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600315\/revisions\/600327"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/576075"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=600315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=600315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=600315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}