Nvidia Corporation (NASDAQ:NVDA) has achieved a market valuation that matches the entire Chinese stock market, marking a historic milestone. The chipmaker’s market cap has surged by $600 billion in just two months, reaching $1.7 trillion, according to Bank of America’s chief investment strategist, Michael Harnett. This puts Nvidia’s valuation on par with the combined market cap of all Chinese-listed companies on the Hong Kong Stock Exchange. Since the beginning of 2023, Nvidia’s market cap has almost quadrupled, with its stock rising by 239% in 2023 and an additional 41% in 2024.
While Nvidia’s growth is impressive, some experts have expressed concerns about its valuation. Aswath Damodaran, often referred to as the Dean of Valuation, has previously claimed that Nvidia’s stock is priced to the point of insanity. However, other analysts hold a more optimistic view of Nvidia’s future. Joseph Moore, an analyst at Morgan Stanley, has reiterated an Overweight rating on Nvidia and raised his price target to $750, citing the company’s strong near-term results and unique valuation.
Nvidia’s recent partnership with Cisco Systems to expand artificial intelligence (AI) technology in the corporate sector has further solidified its position as the most valuable chipmaker globally. Analysts are optimistic about Nvidia’s potential for future growth, with Bank of America’s Vivek Arya predicting a significant upside in the company’s quarterly earnings driven by AI innovations and the upcoming B100 accelerator launch.
In contrast to Nvidia’s stellar performance, China has been experiencing economic struggles that have led to a significant decline in stock prices. The Hang Seng index, a key indicator for Chinese stocks listed in Hong Kong, has fallen by 26% in the past year and 8% year-to-date.
The divergence between Nvidia’s skyrocketing market cap and China’s struggling stock market highlights the dynamic nature of the global economy. It remains to be seen how these trends will evolve in the future, but for now, Nvidia continues to set new records with its impressive growth trajectory.
