NVIDIA's stock price rose 4% on Monday, closing at a record high of $216.61, with its market value surpassing Alphabet's by over $1 trillion. Over the past year, its stock price has cumulatively increased by 93%, and revenue has grown 65% year-over-year. Bank of America maintained a 'Buy' rating with a target price of $300. This week’s earnings reports from tech giants will serve as a key validation window for the progress of AI commercialization.
Ahead of the tech giant earnings week, NVIDIA's stock price hit another all-time high.
On Monday, $NVIDIA (NVDA.US)$ The stock price surged 4% in a single day, closing at a record high of $216.61, with the market capitalization reaching $5.26 trillion, surpassing the world's second-largest market cap company, Alphabet, by over $1 trillion.
This rise further solidified NVIDIA's dominant position in the global capital markets. Alphabet,$Microsoft (MSFT.US)$、$Amazon (AMZN.US)$and Meta are set to release their earnings reports collectively on Thursday this week, with growing market attention focused on AI-related performance.
In terms of performance, according to FactSet analyst data, the net profit margin of S&P 500 component companies is expected to reach a 15-year high in Q1.
Market cap leader strengthens moat through diversified strategic initiatives
NVIDIA's current market capitalization stands at $5.26 trillion, far surpassing Alphabet's $4.2 trillion and Apple's $3.9 trillion, firmly holding the top spot globally.
Over the past year, NVIDIA's stock price has risen 93.34%, reflecting continued upward revaluation by the market of its growth potential.
One of the direct catalysts driving this rally was the partnership$Qualcomm (QCOM.US)$between NVIDIA and its key customer OpenAI, which announced a collaboration to develop processing chips for smartphones.
This news reinforced market expectations of expanding demand for AI applications and further validated NVIDIA's core position across the entire AI supply chain.
Additionally, NVIDIA's robust performance is rooted in structural growth in AI computing demand. Over the past twelve months, the company's revenue grew 65% year-over-year, with strong demand for its GPU products in both artificial intelligence and gaming sectors.
At the cloud infrastructure level, NVIDIA recently announced an expansion of its partnership with Google Cloud, introducing the A5X bare metal instances powered by the NVIDIA Vera Rubin architecture to support large-scale deployment expansions within Google Cloud data centers.
In emerging application scenarios, NVIDIA has also partnered with$Oklo Inc (OKLO.US)$Los Alamos National Laboratory to advance nuclear fuel verification efforts, supporting the U.S. Federal Genesis Mission with AI infrastructure.
This cross-sector strategy indicates that NVIDIA's technological penetration has extended into traditional industries such as energy.
According to InvestingPro analysis, NVIDIA's stock price remains undervalued relative to its fair value, suggesting potential for further upside.
Bank of America Securities maintains a 'Buy' rating for NVIDIA with a target price of $300, noting that the company’s strategic shift toward shareholder returns could bring additional value enhancement.
AI adoption still exhibits structural divergence, concentrated in technology and finance sectors.
Despite high market sentiment, research from Wolfe Research highlights that the practical implementation of AI continues to display significant industry concentration characteristics.
Currently, only about 19% of enterprises apply AI in production processes for products and services, with penetration outside the technology and financial industries remaining limited.
This implies that the investment rationale behind AI-related trading is still largely driven by the performance and expectations of a few leading companies.
The upcoming earnings reports of Alphabet, Microsoft, Amazon, and Meta this week will serve as an important window for the market to assess the progress of AI commercialization.
The judgment of Michael Rosen, Chief Investment Officer of Angeles Investments, might be the most straightforward:
What drives the stock market is corporate profits—nothing more, with everything else being secondary.
Editor/Rocky