We take the liberty of classifying Nvidia as a Taiwan-related company because Nvidia’s long-time CEO, co-founder and co-owner, Jensen Huang, was born in Taiwan.
Bank of America has raised its price target for Nvidia from $165 to $190, implying a market capitalization of $4.7 trillion. This would exceed the market value of any public company to date, surpassing Apple’s record of $3.6 trillion.
Analysts believe there is a “generational opportunity” for Nvidia in the AI accelerator market. The company currently holds about 80% of this market, as major clients like Alphabet, Meta, and OpenAI invest heavily in Nvidia’s graphics processing units (GPUs) for training large language models.
In the quarter ending in July, Nvidia reported sales and net income increases of 350% and 2,400%, respectively, compared to the same period in 2022. Originally recognized for its gaming graphics, Nvidia continues to be led by its founding CEO, Jensen Huang, who is now the 11th-richest person globally due to his 3% ownership in the company.
Despite common valuation metrics indicating that Nvidia stock may be overvalued—with the second-highest price-to-sales ratio in the S&P 500—many remain optimistic, driven by what Huang describes as “emotional” and “insane” demand for Nvidia’s products.
