NVIDIA Breaches $3T Mark, Becomes World's 2nd-Most Valued Firm
NvidiaNVIDIA 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 marketmarkets. UncertaintiesWhile loomuncertainties remain over future chip demands and competitive pressures from giants like Microsoft and Amazon., The chip-makerNvidia'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 significantunmatched.
At such high valuations, a fall in Nvidia's share price is both inevitable and imminent. At the very least, it will not be able to sustain such a rockstar performance for too long. InvestorsAs Nvidia is currently trading at almost 90 times its earnings, investors will serve themselves better,well therefore, by applying caution, and keeping in mind that markets are cyclical.