Nvidia’s spectacular rise to a $3.7 trillion market cap. This milestone makes it the most valuable company in the world by market cap. Since then, the company’s stock price has skyrocketed up to $153.53 per share. This new milestone is a result of an almost 3% increase in trading that occurred Wednesday. In the course of the session, Nvidia’s stock opened strongly, reaching an intraday high of $153.55. This remarkable highwater mark exceeded its old record of $149.43, reached on January 6.
The company’s strong performance has been fueled by soaring revenue, which was up 69% year-over-year as of last May. Nvidia’s data center business skyrocketed by an astonishing 73% during that quarter. This explosion is, of course, a manifestation of the incredible demand for Nvidia’s inputs in the AI sector. Often, analysts cannot contain their enthusiasm for Nvidia’s prospects. They raised their full fiscal year revenue growth projection to 53%, which would put the company’s total revenue well over $200 billion.
Nvidia’s CEO, Jensen Huang, addressed the challenges posed by recent regulatory changes, particularly regarding the company’s access to the Chinese market. Huang stated, “The $50 billion China market is effectively closed to U.S. industry,” highlighting the impact of new restrictions implemented by the Trump administration in April. Such rules effectively limited sales of Nvidia’s H20 AI processor, which was uniquely designed to meet old regulations.
Despite these challenges, investor confidence remains strong. Many believe that Nvidia’s leadership in artificial intelligence will not be hindered by the export controls affecting its business with China. Major customers such as Microsoft demonstrate strong conviction in Nvidia’s technology. It’s important, though, because they’re using it to power their own AI initiatives.
Meanwhile, Nvidia’s stock is on an incredible bullish run here. This enviable performance places it firmly within the “three horsemen” in the technology landscape including Broadcom and TSMC. Uncertainty in the developing regulatory landscape has investors on edge. According to Most, analysts were left feeling cautiously optimistic about Nvidia’s prospects for addressing these challenges and maintaining its growth.