With the advance registered this Tuesday in its prices on Wall Street, Nvidia Corp. (NVDA) For the first time, it has become the most valuable company in the world by market capitalization, so analysts suggest that you can start investing or increase participation (for those who are already investing) in this CEDEAR.
To achieve this position, so far this year the semiconductor giant has registered a raise your quotes by 174%that is, far above its main competitors.
To crown this climb, this Tuesday’s advance was key, as it allowed the market value to rise to US$3.3 billionthus moving Microsoft and Apple.
According to The Wall Street Journal, Nvidia currently controls between 70% and 90% of the market in this industry, with a 400% increase in profits in 2023 compared to the previous year.
Already at the beginning of the month, Nvidia had managed to surpass Apple in market value for the first time since 2002, moving it to third place in the “top three”, but last week, the apple firm regained ground and not only returned to the second place, but also managed to displace Microsoft to regain first place, but His supremacy was short-lived..
Nvidia’s listing left Microsoft and Apple behind
Nvidia is seen by investors and analysts as the biggest beneficiary of artificial intelligence technology, as it dominates the market with its coveted chips that help power the data centers that execute the complex computing tasks that these types of applications require. Demand for its H100 accelerators is skyrocketing and helped boost the chipmaker’s sales by more than 125% last year.
Nvidia is seen by investors and analysts as the biggest beneficiary of AI technology
Microsoft, for its part, is also considered one of the first winners in AI thanks to its investment and partnership with OpenAI, creator of ChatGPT. And this week, Apple shares rose after the iPhone maker unveiled its plan to use the technology, finally appeasing investors.
“We believe that over the next year the race to $4 trillion in technology market capitalization will be led by Nvidia, Apple and Microsoft,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note.
Investors and Nvidia CEO Jensen Huang, They maintain that Nvidia It is more than a chip manufacturer. “They’re not just selling chips, they’re selling systems,” Michael Lippert, vice president and portfolio manager at Baron Capital Inc, said in an interview, alluding to the company’s proprietary software and development ecosystem.
Nvidia’s rapid rise to the top has been record-breaking, as the company is one of the few to demonstrate significant revenue growth thanks to AI.
“Nvidia GPU chips are, in essence, the new gold or oil of the technology sector, as more companies and consumers quickly embark on this path with the Fourth Industrial Revolution well underway,” says Ives.
Nvidia: an investment opportunity in CEDEARs
For local investors in CEDEARs, this advance by the company is undoubtedly excellent news, beyond the small scare that some recently suffered when they saw that prices collapsed. This was a direct consequence of the “split” carried out by the company, by which the number of shares held by each investor was multiplied by ten, without affecting the amount invested.
Apple and Microsoft were displaced by Nvidia, which is now at number 1
It should be noted that clean of that effect, The price of Nvida in Buenos Aires climbs no less than 255 percent.
As for what may happen to its price in the medium term, analysts at Argus, a prominent financial analysis firm, consider that Its target price is set at $150.up from $110 previously, while the firm continues to support a “Buy” rating for the stock.
The revision reflects analysts’ optimistic view of the company’s future, especially given its results in the past fiscal year and its growth potential in the next.
The Argus recommendation suggests investors start or increase their holdings in NVIDIA. The firm’s conviction is based on the belief that NVIDIA represents a leading opportunity for investors to participate in the AI sector
But they are not the only ones, as other companies such as TD Cowen raised their price target to $140, maintaining a “Buy” rating and reflecting their confidence in NVIDIA’s long-term growth, especially in the data center sector. Similarly, Cantor Fitzgerald and Barclays also adjusted their targets to $140 and $145 respectively, maintaining their overweight rating on the stock.
