Nvidia is back in the limelight again as the company’s stock reached a new all-time high and gained more than 80% since its pre-April lows. The firm is currently worth 3.85 trillion making it the most valuable firm in the world. Although the company suffered a significant loss in China due to the export laws in the U.S., which have locked out Nvidia in the Chinese market – worth $50 billion, the company is still doing well. Nvidia has lost over 4.5 billion of chips and lost 8 billion in potential sales revenue. Still, it has maintained a strong momentum. Nvidia CEO Jensen Huang admitted candidly that the China market is pretty much closed but the company has gotten its attention elsewhere.
What actually rocks Nvidia is its leading position in the sphere of AI. The company reported a 69% increase in revenue in May, with its data centre segment increasing by 73%. Analysts have expectations that revenues generated by Nvidia will reach almost 200 billion dollars in fiscal 2026. Wedbush analyst Dan Ives estimated that Nvidia would have a $4 trillion market cap this summer and might topple to $5 trillion in the following 18 months.
What is adding momentum to this growth is a surge of investment by governments across the world. Nations are in a rush to develop their own AI system and hope to achieve data dominance and language models. This is quite a contrast to the previous patterns when the American giant technological corporations were way ahead. Today, Nvidia is collaborating with the governments of the U.K., Germany, France and the Middle East.
In addition to AI, robotics also holds a lot of potential for Nvidia. Huang thinks that Nvidia chips will soon offer billions of robots to the world. Although we are living in a world of increasing tensions in trade and other factors, Nvidia has such a great advantage in its technology and its subsequent opportunities in the market that it is hard to consider conclusively how its ranges are so frivolous.
In brief, Nvidia does not only ride an AI wave, but it is also defining the new face of technology. It had a good performance, and with new worldwide demand, it is a stock to be watched despite its difficulties.
