Nvidia's Rebound Rally Adds Billions To Market Value, Analysts Eye AI Growth: Report

Author: Anusuya Lahiri | August 14, 2024 08:56am

Nvidia Corp (NASDAQ:NVDA) stock rebounded after weeks of volatility, making its valuation more attractive to the shareholders.

The recent selloff brought Nvidia's valuation down to attractive levels. The stock now trades at about 36 times forward earnings, compared to 44 times in June.

Over the past four sessions, Nvidia's shares have surged by 17%, adding nearly $424 billion to its market value.

Also Read: Apple, Intel, And AMD Lead Charge In AI-Capable PC Market Surge: Report

This surge has also contributed significantly to broader market gains, with Nvidia accounting for 22% of the S&P 500's recent uptick.

Major technology companies like Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), and Meta Platforms Inc (NASDAQ:META) have all indicated their continued investment in AI infrastructure, signaling ongoing demand for Nvidia's defying geopolitical tensions.

BofA Securities analyst Vivek Arya told CNBC that he expects Nvidia to retain its 80%+ share in the artificial intelligence hardware market, which has the potential to triple over the next few years.

Price Action: NVDA shares were trading higher by 1.88% to $118.52 premarket at the last check on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: AMZN GOOG META MSFT NVDA