Optimism

<p>In just 70 trading days, Nvidia has added $750 billion to its market capitalization. The high-tech company, which specializes in graphics chips and artificial intelligence (AI), is on track to surpass Amazon.</p>
<h2 id="h-nvidia-soars-on-the-stock-market">Nvidia Soars on the Stock Market</h2>
<p>In the space of just 10 weeks, Nvidia has achieved a remarkable feat, surpassing the historic performance of most companies: a spectacular increase of $750 billion in its market value.</p>
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<p>As of the last record on October 31, 2023, the chip maker had a market capitalization of $950 billion. Today, this <a href="https://twitter.com/KobeissiLetter/status/1754691070674247905" target="_blank" rel="noopener noreferrer nofollow">figure</a> stands at nearly $1.7 trillion, marking an astonishing 79% increase in just 70 days.</p>
<p>This dizzying growth translates to an impressive daily average of $10.7 billion increase in stock market value. At this frantic pace, Nvidia could very soon surpass Amazon and become the 5th most valuable public company in the world.</p>
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="694" src="https://www.cointribune.com/app/uploads/2024/02/image-5-1024x694.png" alt="Nvidia Stock Chart. Source: The Kobeissi Letter" class="wp-image-669501" srcset="https://www.cointribune.com/app/uploads/2024/02/image-5-1024x694.png 1024w, https://www.cointribune.com/app/uploads/2024/02/image-5-300x203.png 300w, https://www.cointribune.com/app/uploads/2024/02/image-5-768x521.png 768w, https://www.cointribune.com/app/uploads/2024/02/image-5-1536x1041.png 1536w, https://www.cointribune.com/app/uploads/2024/02/image-5.png 1888w" sizes="(max-width: 1024px) 100vw, 1024px">
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<h2 id="h-boundless-optimism-for-ai">Boundless Optimism for AI</h2>
<p>How can we explain such a stock market rally? The answer lies in two letters: AI. Indeed, in recent years, Nvidia has established itself as the global leader in chips dedicated to artificial intelligence. With the recent rise of language models like ChatGPT, the demand for its GPUs has grown exponentially.</p>
<p>Goldman Sachs, among others, is showing boundless optimism. The investment bank has recently revised its price target for Nvidia upward to $800, banking on a major surge in the company’s profits thanks to AI. It is thus forecasting a 22% increase in profits by 2025.</p>
<p>Under these conditions, it is hard not to envision the tech company continuing to push its stock market limits. With the pace of <a href="https://www.cointribune.com/en/bitcoin-abandoned-in-favor-of-artificial-intelligence-ai/" target="_blank" rel="noopener noreferrer nofollow">the enthusiasm for AI</a>, new records could quickly be set, despite already very high valuation multiples.</p>

Nvidia breaks all records on the stock market: how far will the crazy speculation around AI go?

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