Nvidia Breaches $3T Mark, Becomes World's 2nd-Most Valued Firm
The Facts
US AI chip-maker NVidia's market value rose 5% on Wednesday to $3.01T, surpassing Apple to make it the world's second-most valuable company.
US AI chip-maker Nvidia's market value rose 5% on Wednesday to $3.01T, surpassing Apple's to make it the world's second-most valuable company.
The Spin
Nvidia's meteoric rise exemplifies the volatility in predicting new tech market. Uncertainties loom over future chip demands and competitive pressures from giants like Microsoft and Amazon. The chip-maker's capabilities and strong developer tools enhance its position. And even though Wall Street predicts a revenue growth slowdown, Nvidia's key role in AI remains significant.
At such high valuations, a fall in Nvidia's share price is both inevitable and imminent. At least, it will not be able to sustain such rockstar performance for too long. Investors will serve themselves better, therefore, by applying caution, keeping in mind that markets are cyclical.