NVIDIA's stock price hits a new high, just one step away from becoming the world's most valuable company
NVIDIA's stock price rose 1.33%, reaching an intraday all-time high of $160.98, with a market capitalization rising to $3.89 trillion, just a step away from Apple's market capitalization record. Analysts expect NVIDIA's market value to surpass $4 trillion in the summer, with a potential challenge of $5 trillion in the next 18 months. However, market observers have differing views on the optimism surrounding the AI boom, warning of potential bubble risks
According to the Zhitong Finance APP, on the brief trading day before the July 4th Independence Day holiday in the United States, artificial intelligence chip leader NVIDIA (NVDA.US) saw its stock price rise by 1.33%, reaching a historic high of $160.98 during the session, with a market capitalization rising to $3.89 trillion. At one point, the stock rose over 2% during the session, with a market cap peaking at $3.92 trillion, just a step away from Apple's (AAPL.US) record of $3.915 trillion set at the end of 2024.
In contrast, Apple's market capitalization has been declining recently. Due to slow innovation progress in the AI field, Apple is gradually falling behind in the AI race against tech giants like Microsoft (MSFT.US) and NVIDIA (NVDA.US). Additionally, U.S. President Trump has reignited tariff discussions, threatening to impose tariffs on products produced overseas by Apple, adding further uncertainty.
NVIDIA's stock price has been climbing steadily since the release of its financial report at the end of May. Since the stock price fluctuations at the beginning of 2025, NVIDIA has now seen an increase of over 19% this year.
Wedbush analyst Dan Ives stated in a report to clients on Thursday that he expects NVIDIA's market capitalization to exceed $4 trillion this summer, and it may even challenge the $5 trillion mark in the next 18 months.
He said, "We believe that tech stocks will perform very strongly in the second half of this year. The market is still underestimating the growth wave that will come from the $2 trillion investment by businesses and governments in AI technology and its applications over the next three years."
However, not all market observers are optimistic about the AI boom. Notable short-seller Jim Chanos pointed out in an interview that the current market atmosphere surrounding AI reminds him of the internet bubble period.
Chanos warned that the revenue sources of AI-related companies are somewhat fragile, and if investors or companies cut back on spending, capital expenditures could be quickly reduced, leading to delays or cancellations of related projects, which would rapidly reflect in revenue and profit expectations. He stated, "We have not yet entered the bubble-bursting phase, but the risk certainly exists and may be severely underestimated by the market."
