NVIDIA Corp (NASDAQ:NVDA) stock reached another all-time high on Thursday, solidifying its position as the world’s most valuable company with a market capitalization of $3.89 trillion. Here’s what investors need to know.
What To Know: Nvidia’s surge Thursday came as U.S. stocks broadly rallied to new records, fueled by stronger-than-expected labor market data that eased recession concerns. The S&P 500 was approaching 6,300, and the Nasdaq-100 climbed to 22,860. Tech stocks, particularly the “Magnificent Seven,” were leading the charge.
Industry experts, like Wedbush Securities’ Dan Ives, anticipate Nvidia and Microsoft could be the first companies to hit a $4 trillion market cap this summer, potentially reaching $5 trillion within the next 18 months.
This optimistic outlook is driven by relentless innovation and significant investments in AI infrastructure, with both companies deemed “foundational pieces” of the ongoing AI revolution.
Further bolstering the semiconductor sector, the U.S. Senate and House passed the “One Big Beautiful Bill,” which includes an increased investment tax credit for chip manufacturers, raising it from 25% to 35% for facilities expanding domestic production by 2026.
This legislative support, alongside strong technical indicators like the VanEck Semiconductor ETF (SMH) forming a “Golden Cross,” suggests continued bullish momentum for chipmakers. Nvidia, comprising over 21% of the SMH, is poised to benefit significantly from these favorable conditions and the burgeoning demand for AI.
Benzinga Edge Rankings: Benzinga Edge data for Nvidia reveals a strong performance across key metrics. The stock boasts a high Growth score of 98.59, indicating robust expansion.
Momentum is also significant at 78.44, suggesting a strong upward trend. However, Value is considerably lower at 6.92, implying the stock may be expensive relative to its fundamentals.
Price Action: According to data from Benzinga Pro, Nvidia shares closed higher by 1.33% to $159.34 Thursday afternoon. Shares are higher by some 12.8% over the trailing month. The stock hit a 52-week high of $160.98 on Thursday, and has a 52-week low of $86.62.
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How To Buy NVDA Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Nvidia’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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