Nvidia’s stock continues its meteoric rise, driven by soaring demand for AI computing power, with shares hitting an all-time high of $183.31 and a market capitalization of $4.45 trillion. A major investor recently reported record quarterly profits, bolstered by its significant Nvidia holdings, adding momentum to the chipmaker’s rally. Analysts remain bullish, with 35 of 39 experts recommending a "buy," citing an average price target of $186.14. However, challenges loom: a key customer disbanded its in-house supercomputing team, shifting reliance to external providers like Nvidia, while geopolitical tensions flare over illegal exports of its advanced chips to China. Competitors are also advancing, with one rival open-sourcing its AI toolkit in a direct challenge to Nvidia’s dominance.
Geopolitical and Market Risks Lurk
Despite optimism, concerns persist. An analyst warns that Nvidia’s staggering growth—mirroring the 1990s tech bubble—could pose systemic risks if AI investments falter. Upcoming quarterly results on August 27 will be a critical test, with earnings expected at $0.998 per share and $45.7 billion in revenue. Past volatility, including a sudden sector-wide selloff triggered by a cheaper AI alternative, underscores the fragility of Nvidia’s market leadership. While the Blackwell architecture launch and inventory releases may fuel further gains, export restrictions and intensifying competition could temper the rally.
