Nvidia's (NVDA) Milestone Performance
Nvidia (NVDA) stock hit a new record high on Thursday, opening at $152.89 per share—an impressive 4% gain—pushing the company’s valuation past $3.7 trillion. This milestone made Nvidia $250 billion richer than Apple (AAPL), cementing its position as the world’s most valuable public company.
However, the excitement was short-lived. Within eight minutes, Nvidia’s market cap dipped by $175 billion, with shares falling to $144.34—a 5.6% drop—highlighting the day’s volatility.
The pre-market session had already shown signs of unease, as shares were down 3% following Nvidia's Q3 earnings report. While the company surpassed Wall Street expectations on both revenue and earnings, cautious guidance tempered investor enthusiasm.
By mid-morning, Nvidia recovered, with shares climbing 1.7% by 8:43 AM ET, contributing to a broader market recovery as futures on major indices gained 0.5%.
Wall Street’s Optimism for Nvidia
Despite near-term volatility, major analysts remain optimistic:
Goldman Sachs reaffirmed its “Buy” rating, raising its price target from $150 to $165, citing Nvidia’s strong AI pipeline and placing it on its Americas Conviction List.
Barclays highlighted Nvidia’s leadership in artificial intelligence (AI) and called sentiment “noticeably positive.”
Morgan Stanley emphasized Nvidia’s upcoming Blackwell GPU launch in January, which is expected to drive unprecedented demand into 2025.
Citi increased its price target to $175, while Wells Fargo went even higher at $185, both citing confidence in Nvidia’s dominance in AI chips and robotics applications.
Analysts agree that the Blackwell GPU ramp-up will be a long-term growth driver, with gross margins projected to reach the mid-70% range by late 2025, according to JPMorgan. Bernstein also noted that supply constraints could persist into 2026, keeping prices elevated and demand robust.
Bitcoin Surges Past $98,000
Meanwhile, Bitcoin reached an all-time high of $98,000, gaining 3.5% on Thursday as optimism grows around pro-crypto policies expected under the incoming Trump administration.
Key drivers include:
A favorable regulatory environment for cryptocurrencies.
The formation of a “golden cross” on Bitcoin’s moving averages, traditionally viewed as a bullish indicator.
Analysts are optimistic that Bitcoin could breach the $100,000 mark before the month ends. However, with the RSI in overbought territory, a short-term correction cannot be ruled out.
The Big Picture
Nvidia’s record-breaking rally and Bitcoin’s meteoric rise underscore their influence on the markets. Nvidia’s performance, in particular, has become a defining indicator, outshining even key economic data like inflation reports and Federal Reserve updates.
As the markets digest Nvidia’s cautious guidance and Bitcoin’s rally intensifies, investors are closely watching for further developments in AI innovation and crypto-friendly policies.
