Nvidia Stock Surges To Record High On $6 Trillion Valuation Call From Loop Capital

Nvidia CEO Jensen Huang also touted robotics as the chipmaker's next biggest market for potential growth at the annual shareholder meeting.

Shares of Nvidia (NVDA) jumped nearly 4% to hit an all-time high of $153.95 in afternoon trade on Wednesday, amid its annual shareholder meeting, and a price target boost from Loop Capital.

Despite the surge, retail sentiment on Stocktwits around the company remained in ‘bearish’ territory as investors anticipated the stock to fall after hitting a record high.

Loop Capital raised its price target to $250, up from $170, while maintaining a ‘Buy’ rating on Nvidia’s stock – a potential upside of 63% – as per TheFly. The brokerage said “the math just works” for the AI bellwether, stating that the market is entering the next “golden wave” of Generative AI (Gen-AI).

It said its analysis of the AI supply chain indicates that spending on Gen-AI and AI accelerators by hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL/GOOG) could grow to $2 trillion by 2028.

Loop Capital argued that if Nvidia maintains its leadership in supplying AI chips and systems, its market capitalization could grow to $6 trillion, nearly double its current value of $3.6 trillion.

Wednesday’s jump has already put Nvidia ahead of Microsoft and Apple (AAPL), one of its biggest customers, to become the largest company in the world as per its market cap.

According to a report by The Wall Street Journal, Nvidia is quietly building a parallel AI-focused cloud ecosystem that could grow large enough to challenge Amazon, Microsoft, and Google. 

It launched its own cloud service called DGX Cloud in 2023 and has invested in new AI-focused cloud companies like CoreWeave (CRWV) and Lambda. The report said these developments indicate that Nvidia isn’t just selling chips anymore, it’s now building a recurring revenue stream in cloud services. It noted that Nvidia has $10.9 billion in long-term agreements, suggesting DGX Cloud could become a major source of revenue.

Nvidia CEO Jensen Huang also touted robotics as the chipmaker's next biggest market for potential growth at the annual shareholder meeting. According to him, self-driving cars would be the first major commercial application of that technology. 

“We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity,” Huang said on Wednesday. “We’re working towards a day where there will be billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories that can be powered by Nvidia technology."

Wall Street analysts have an average price target of $172.60 on the stock, implying a potential upside of 12%, according to Koyfin data. Of the 66 analysts covering the stock, 58 rate it a ‘Buy’ or ‘Strong Buy’, 7 have a ‘Hold’, and just one recommends a ‘Sell’.

Nvidia’s stock has gained more than 13% this year and 26% over the past 12 months. 

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Editor's note: This story has been updated with Nvidia CEO Jensen Huang's comments at the company's annual shareholder meeting.<