NVIDIA's stock price has performed strongly recently and continues to rise. Its market value has approached US$1.72 trillion, second only to Amazon, and is expected to become the fourth largest listed company in the United States. This is mainly due to the strong growth in demand for artificial intelligence, which has promoted the improvement of Nvidia's performance. However, such a high valuation also brings certain risks. The room for future stock price growth may be limited, and there is the possibility of a correction. This article will analyze the reasons for the rise in Nvidia's stock price and potential risks.
NVIDIA's stock price has soared by more than 40% this year, and its market value has approached US$1.72 trillion, second only to Amazon's US$1.76 trillion, and is expected to surpass the latter to become the fourth largest listed company in the United States. NVIDIA's strong performance can fully support its stock price rise. Its growth is mainly due to the strong demand for artificial intelligence. However, the continuous increase in NVIDIA's valuation has put the stock price under certain correction pressure. Considering the recent sharp rise, further gains may be difficult.All in all, Nvidia's strong growth is mainly due to the booming development in the field of artificial intelligence, but its high valuation also exposes its stock price to potential risks. Future trends still require attention to market dynamics and company performance. Investors need to carefully assess risks and make rational investment decisions.