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NVIDIA Corporation (NVDA), headquartered in Santa Clara, California, is well-known worldwide for its graphics, computing, and networking solutions. Valued at $2.83 trillion by market cap, NVDA is worth more than all trillion-dollar publicly traded companies except Microsoft (MSFT) and Apple (AAPL). The company is a pioneer of GPU-accelerated computing, and it specializes in products and platforms for the gaming, professional visualization, data center, and automotive markets.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and NVDA fits right into that category. The chip giant is one of the world’s most important companies right now as companies worldwide transition from general-purpose to accelerated computing and generative AI. In 2024, it became the company with fastest growth from $1 trillion to $2 trillion.
The tech behemoth has fallen marginally from its 52-week high of $1,158.19, which it hit on May 30. Shares of NVDA are up 34.6% over the past three months, outperforming the Dow Jones Industrials Average ($DOWI), which registered a 1.3% loss over the same time frame.
Longer term, NVDA shares rose 191.8% over the past year, and in 2024, the stock is up 131.7%. By contrast, the DOWI is up 2.3% on a YTD basis and 14.2% over the past 52 weeks.
To confirm the bullish price trend, NVDA has been trading above both its 50-day and 200-day moving averages since early May.
On June 3, NVDA shares rose more than 4% after CEO Jensen Huang announced a Blackwell Ultra AI chip for 2025 and a next-generation platform in development called Rubin for 2026 at a Computex conference in Taiwan. The company said that demand for its H200 and Blackwell chips will outstrip supply, and these products will help drive its next phase of growth.
On May 23, NVDA shares rose more than 6% in pre-market trading after the company reported stronger-than-expected Q1 results and provided above-consensus Q2 revenue and EPS guidance. The company also boosted its quarterly dividend by about 150% to $0.10 a share and announced a 10-for-1 stock split, effective June 7. Its revenue was $26.04 billion, higher than analyst expectations of $24.65 billion, and its EPS stood at $6.12, coming in higher than the consensus estimates of $5.59. The company also guided sales of $28 billion and EPS of $6.22 in the second quarter, higher than the consensus of $26.66 billion and $5.95, respectively.
To emphasize the stock’s outperformance, top rival Advanced Micro Devices, Inc. (AMD) has underperformed NVDA. AMD stock has gained 38.2% in the past 52 weeks and is up 10.5% on a YTD basis.
After its recent outperformance compared to the DOWI, analysts continue to remain optimistic about NVDA’s prospects. The stock has a consensus rating of “Strong Buy” from the 40 analysts covering it, and the mean price target of $1,152.04 is a marginal premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
