After witnessing a notable share price drop in 2022 amid a downturn in the broader tech market, it seems that Nvidia’s stock (NASDAQ: NVDA) is showing no signs of slowing down this year.
In that regard, shares of the state-of-the-art graphic processing unit (GPU) maker are set to reach another milestone on Tuesday, May 30.
Assuming it can hold on to today’s gains in premarket trading of more than 3.5%, all eyes are on NVDA as the stock looks ready to hit $1 trillion in market valuation for the first time in history.
Nvidia’s stock price analysis
At the time of publication, shares of Nvidia are changing hands at $404.3 per share, up from its closing price and the market cap of $961.9 billion, respectively, on Friday, May 26.
In the past week alone, NVDA soared more than 22%, and over 44.2% in the last month. Year-to-date, the company’s stock is up by around 165%, including today’s market pre-open gains.
What fueled NVDA’s price surge in 2023?
There are several factors that contributed to Nvidia’s relentless stock market performance in the first half of the year, most notably the ongoing artificial intelligence (AI) fever.
The unparalleled growth of OpenAI’s chatbot ChatGPT late last year has left tech companies racing to launch their own generative AI solutions, leading to a burgeoning demand for cutting-edge chips used to power such products.
Being one of the biggest manufacturers of AI chips, it is no surprise Nvidia is flying at the moment. This rising interest in AI hardware has been reflected in Nvidia’s latest earnings report, which beat Wall Street estimates across the board.
In light of the AI mania, Stifel analyst Ruben Roy raised the price target for Nvidia’s stock from $225 to $300 last week, saying the chipmaker “remains the best-positioned component/ systems company to benefit from the AI investment cycle in the medium term, in our view.”
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