Nvidia Corp. shares soared to a fresh all-time high this week, reinforcing its position as a global technology leader and the most valuable company on Wall Street. The stock rose 4.3% to $154.31, surpassing its previous record from January and extending a powerful rally that reflects investors’ confidence in the company’s role at the forefront of the artificial intelligence (AI) boom.
With this latest surge, Nvidia’s market capitalization climbed to approximately $3.77 trillion, overtaking Microsoft Corp., which stands at about $3.66 trillion. The gain adds to Nvidia’s impressive rise since April, when the stock was at a low point. From that low, Nvidia has gained 63%, adding nearly $1.5 trillion in market value in just a few months.
The company’s most recent earnings report served as a catalyst for bullish sentiment. Nvidia reported strong revenue growth and signaled confidence in continued momentum despite challenges such as restrictions on selling advanced chips to China. Nvidia’s biggest customers — including Microsoft, Meta Platforms, Alphabet, and Amazon — have shown no signs of slowing their AI investments, further supporting Nvidia’s growth prospects.
These tech giants, which together account for over 40% of Nvidia’s revenue, are aggressively building out their AI infrastructure, creating sustained demand for Nvidia’s cutting-edge chips.
Many Wall Street analysts continue to see upside in Nvidia’s stock. Nearly 90% of analysts tracked by Bloomberg recommend buying the stock. Notably, Nvidia’s shares still trade about 12% below the average analyst price target, suggesting that experts believe the rally has room to run.
The stock’s valuation also appeals to investors. Nvidia currently trades at 31.5 times expected 12-month earnings, which is below its 10-year average and compares favorably to the Nasdaq 100 Index’s multiple of 27. Its PEG ratio — a key measure of valuation relative to growth — stands at 0.9, the lowest among the so-called Magnificent Seven tech stocks.
Nvidia’s dominance in the AI space has widened its competitive moat. According to Michael Smith, co-portfolio manager at Allspring Global Investments, the company’s prospects have only improved. He noted that the ongoing AI arms race is likely to continue through 2025 and 2026, further strengthening Nvidia’s position.
At the recent shareholder meeting, CEO Jensen Huang reassured investors about the strength of demand. He emphasized that the tech industry is still in the early stages of upgrading its AI infrastructure, signaling that Nvidia’s growth trajectory is far from over.
Despite Nvidia’s breathtaking rise — including a 15% gain in 2025, following a 170% rally in 2024, and a 240% surge in 2023 — the stock remains attractively priced by some measures. The combination of high growth and a reasonable multiple makes Nvidia a favorite among investors looking for exposure to AI.
Interestingly, Nvidia is still relatively under-owned compared to other Big Tech names. About 74% of long-only funds hold Nvidia stock, which is lower than holdings in companies like Microsoft (91%), Apple, and Amazon. This under-ownership suggests that there could be additional buying activity in the future, which could support further gains.
While sentiment remains bullish, some investors are mindful of potential volatility ahead. As Michael Smith pointed out, Nvidia’s long-term growth will depend on whether its customers continue to increase their AI investments. Any slowdown in AI-related spending could lead to greater market swings for the stock.
For now, however, Nvidia’s leadership in AI chips, combined with strong demand and reasonable valuation, keeps it in the spotlight as one of the most important and closely watched companies on Wall Street.