New price record: NVIDIA is getting close to Amazon - analysis and outlook

New price record: NVIDIA is getting close to Amazon - analysis and outlook

According to a report by www.finanzen.net, the shares of the chip company NVIDIA started a record hunt at the beginning of the year and thus caught up with Amazon's market value. Thanks to the price increase of a good 7 percent, NVIDIA achieved a market capitalization of 1.31 trillion US dollars, so that the gap to Amazon shrank to 250 billion dollars. A year ago this was more than twice as high.

NVIDIA experienced faltering share price performance in the final quarter of 2023, but gained new momentum with the announcement of new products in the area of ​​artificial intelligence (AI). The company introduced three new desktop graphics chips that are intended to enable end users to better use AI on their computers without being dependent on web services.

These developments are also reflected in market expectations. The share gained 2.28 percent in US trading on the NASDAQ and has since reached a record high of over $543. With a price increase of 239 percent, NVIDIA was the biggest winner in the tech-heavy US index NASDAQ 100 in 2023. Investors' high expectations of the company's growth are also confirmed by the increases in sales: In the third quarter, revenues rose by a little more than 200 percent and an increase of a good 230 percent is expected in the final quarter.

Analysts expect NVIDIA's price to rise even further, with an average price target of nearly $650. Most experts set goals of at least $600.

In contrast, Amazon shares are still a long way from reaching their record of just under $189 in mid-2021. They were up 1.56 percent at $153.73 on Wednesday.

The development at NVIDIA highlights the importance of artificial intelligence innovations to the market and investors' confidence in the company's growth potential. The competitive situation on the stock market therefore also reflects the strengths and changes in the industry.