Nvidia hits record high as analyst predicts AI 'Golden Wave'
FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Nvidia's stock hit a record high on Wednesday, and the chipmaker reclaimed the crown as the world's most valuable company after an analyst said the chipmaker was set to ride a "Golden Wave" of artificial intelligence.
Shares of the Santa Clara, California-based company rose over 4% to a record high of $154.10. The rise sent Nvidia's stock market value to $3.76 trillion, overtaking Microsoft, which was last valued at $3.65 trillion following a 0.2% increase in its stock.
Fueling Nvidia's latest rally, Loop Capital lifted its price target for the designer of high-end AI processors to $250 from $175, while maintaining its "buy" rating.
"Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand," Loop Capital analyst Ananda Baruah wrote in a client note.
Nvidia's latest gains reflect the U.S. stock market's return to the "AI trade" that fueled massive gains in chip stocks and related technology companies in recent years on optimism about the emerging technology.
Nvidia recently traded at about 30 times analysts' expected earnings for the next 12 months, below its average of about 40 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains.
Nvidia, Microsoft and Apple have traded places several times as the world's most valuable company over the past year, with Microsoft leading recently after overtaking Nvidia in early June.
Apple's stock rose 0.4% on Wednesday, putting its value at $3.0 trillion.
Nvidia has now rebounded over 60% from its closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations the White House will reach trade deals to soften the tariffs.
The S&P 500 technology sector index was last up 0.9% at an all-time high. It has now gained almost 6% in 2025.
(Reporting by Noel Randewich; Editing by Leslie Adler)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
32 minutes ago
- The Star
Tesla invited influencers to test its robotaxi. Here's what they had to say
For now, the test vehicles are operating in a limited area. — Reuters AUSTIN: A handpicked group of passengers invited for early rides from Tesla Inc's autonomous, nearly driverless ride-hailing service seemed to like it. But video some posted to social media suggests the automaker's system struggles to comply with traffic laws. Some passengers were wowed by the car's ability to slow for speed bumps, an ambulance or to avoid hitting a pedestrian. One said it did just as well after sundown as during the day. Another was wild about what it may mean for the Austin-based automaker's future. "I was completely mind blown that the same car I can buy today starting at around $38k – which also happens to be the best selling car in the world – just did paid driverless rides around Austin, TX without someone behind the steering wheel and pedal," X user @farzyness posted after three rides in one of the Model Y vehicles being used as robotaxis – which actually start at more than US$50,000 (RM 212,199) , according to "The implications from this are far-reaching and very disruptive. This breaks transportation." He was among a handful of online Tesla influencers – fans who post regularly about the company on social media– who received invitations to download the Robotaxi app and try the company's service Sunday in Austin. It's not available yet to the general public. Rival Waymo already has deployed driverless taxis in Austin, Los Angeles, San Diego and other cities using a different technology that allowed it to get to market faster. It recently completed its 10 millionth paid ride and has begun testing in San Antonio and other cities. Other companies also are testing in Austin. Tesla CEO Elon Musk has made the robotaxi program a priority, and any trouble with it could be highly damaging to the company's stock price, which had tumbled 20% this year. Last Sunday's limited rollout appeared to give it a boost, though, with the share price rocketing at Monday's opening bell. It closed up more than 8% and was up slightly in after-hours trading. Also among the passengers was Rob Maurer, an investor whose live ride video shows the Model Y he's in entering an intersection in a left-turn-only lane. The Tesla hesitates to make the turn, swerves right and continues into an unoccupied lane meant for traffic moving in the opposite direction. A honking horn can be heard as the robotaxi returns to the correct lane over a double-yellow line, a violation. Other riders shared videos of Tesla robotaxis exceeding the posted speed limit by 4 or 5 mph (6.43kph or 8kph). For now, the test vehicles are operating in a limited area. The current geofence area goes as far south as Ben White Boulevard and US 290, west to Texas State Loop 1, north to Cesar Chavez Street and east to US 183. According to CEO Elon Musk, Sunday's trial had a flat fee of US$4.20 (RM18) for the select group. It was unclear if Tesla paid for the influencers' trips to Austin, their robotaxi fares or for social media posts about the service. The company hasn't responded to requests for comment. "As an Early Access Rider, you can be among the first to use our new Robotaxi App and experience a ride within our geofenced area in Austin," the invitations said. "Through this exclusive preview, you'll have the opportunity to provide valuable feedback." Though there was no one behind the wheel, information sent with the invitations indicated front-seat human safety monitors – Tesla employees riding with Sunday's invitees – would be subject to the same restrictions as drivers of Tesla models with the so-called Full Self-Driving system. That means the cabin camera was watching the monitor's eyes to make sure they're on the road and, presumably, warn them if they're not. A few of the videos posted Sunday showed monitors turned around to look at a passenger in the back seats. – San Antonio Express-News/Tribune News Service
The Star
an hour ago
- The Star
Warren Buffett donates record $6 billion Berkshire shares
FILE PHOTO: Berkshire Hathaway Chairman Warren Buffett attends the Berkshire Hathaway Inc annual shareholders' meeting in Omaha, Nebraska, U.S., May 3, 2024. REUTERS/Scott Morgan/File Photo (Reuters) -Warren Buffett donated on Friday another $6 billion of Berkshire Hathaway stock to the Gates Foundation and four family charities, his biggest annual donation since he began giving away his fortune nearly two decades ago. The donation of about 12.36 million Berkshire Class B shares boosted Buffett's overall giving to the charities to well over $60 billion. He donated 9.43 million shares to the Gates Foundation; 943,384 shares to the Susan Thompson Buffett Foundation; and 660,366 shares to each of three charities led respectively by his children Howard, Susie, and Peter: the Howard G. Buffett Foundation, Sherwood Foundation and NoVo Foundation. Warren Buffett still owns 13.8% of Berkshire's stock, based on reported shares outstanding. His $152 billion net worth prior to Friday's donations made him the world's fifth-richest person, according to Forbes magazine. Buffett would rank sixth after the donations, which surpassed the $5.3 billion he donated last June. He donated another $1.14 billion to the family charities last November. In a statement, Buffett maintained he does not intend to sell any Berkshire shares. Now 94, Buffett began giving away his fortune in 2006. He changed his will last year, designating 99.5% of his remaining fortune after his death to a charitable trust overseen by his children. They will have about a decade to distribute the money, and must decide where it goes unanimously. Susie Buffett is 71, Howard Buffett is 70, and Peter Buffett is 67. Warren Buffett has led Omaha, Nebraska-based Berkshire since 1965. The $1.05 trillion conglomerate owns close to 200 businesses including Geico car insurance and the BNSF railroad, and dozens of stocks including Apple and American Express. Susie Buffett leads the Susan Thompson Buffett Foundation, which funds reproductive health and is named for her mother, who was Warren Buffett's first wife. The Sherwood Foundation supports Nebraska nonprofits and early childhood education. The Howard G. Buffett Foundation focuses on global hunger, combating human trafficking and mitigating conflicts. The NoVo Foundation has initiatives focused on marginalized girls and women, and on indigenous communities. Buffett said last June that donations to the Gates Foundation would end when he dies. (Reporting by Jonathan Stempel in New York; Editing by Sandra Maler)
The Sun
2 hours ago
- The Sun
U.S. lawmakers urge probe into OnePlus phone security
WASHINGTON: Two U.S. lawmakers on Friday asked the Commerce Department to investigate whether devices sold by Chinese smartphone maker OnePlus in the United States pose security concerns, according to a letter seen by Reuters. WHY IT MATTERS Representative John Moolenaar, a Republican who chairs a House of Representatives committee on China, and the panel's top Democrat, Representative Raja Krishnamoorthi, noted that major U.S. retailers sell OnePlus devices for use on two U.S. wireless networks. The lawmakers said a recent analysis by a commercial company provided to the committee indicates that these devices may potentially collect and transmit extensive user data -including sensitive personal information to servers under Chinese jurisdiction without explicit user consent. Shenzhen-based OnePlus did not immediately respond to requests for comment. The U.S. Commerce Department also did not immediately comment. CONTEXT BestBuy and both sell OnePlus phones for U.S. consumers, which operate on the Verizon and T-Mobile networks, the committee said. The lawmakers asked the department to task its Information and Communications Technology and Services program with investigating OnePlus phones, including to determine user data types collected by OnePlus devices without explicit user consent "including potential transfers of sensitive personal information and screenshots." Washington in recent years has cracked down on Chinese telecoms, revoking the authorization for China Telecom's U.S. subsidiary and others to operate in the United States, citing national security concerns. The Federal Communications Commission in November 2022 banned approvals of new telecommunications equipment from Huawei and ZTE as well as telecom and video surveillance equipment from Hytera Communications, Hangzhou Hikvision Digital Technology Zhejiang Dahua Technology Co.
