Why Nvidia Faces Uncertainty as Volatile Trading Week Threatens 'Gravy Train' Success

Money | June 21, 2024, 1:34 p.m.

Nvidia's (NVDA) stock experienced a tumultuous week, with shares fluctuating from all-time highs as Wall Street debated the chip giant's potential for further growth. Despite concerns of profit-taking due to its steep climb, Bank of America remains bullish on Nvidia, reiterating a Buy rating and $150 price target. The company briefly surpassed Microsoft as the world's most valuable, but its market cap dipped to $3.12 trillion compared to Microsoft's $3.33 trillion. Analysts warn of potential headwinds from increased competition, impacting pricing power. However, optimism remains high, with Nvidia reporting exceptional earnings growth and making strategic moves like a stock split and dividend increase. Analysts predict a potential $4 trillion market cap for Nvidia, driven by the continued AI revolution and data center investments by tech giants. The race to $4 trillion in market cap is expected to intensify among Nvidia, Apple, and Microsoft in the coming year.