Nvidia’s (NVDA) market capitalization surpassed $4.5 trillion on Sept. 30 as the company’s share price hit a new all-time high on a split-adjusted basis.
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NVDA stock was up as much as 3% in afternoon trading, pushing the share price to a record high of $187.35 and giving the company a market cap of $4.51 trillion. The stock is now up 38% on the year and continues to attract investors as Nvidia steps up its deal-making and cements its leadership position in artificial intelligence (AI).
Privately held OpenAI said last week that Nvidia will take an equity stake in the company worth $100 billion and that it will build hundreds of billions of dollars worth of data centers filled with Nvidia microchips. OpenAI then announced five massive new data centers. Nvidia CEO Jensen Huang has said that about 70% of the spending on each new AI data center is related to the company’s microchips.
Bullish Outlook
NVDA stock is also getting a lift on Sept. 30 from a bullish forecast issued by Citigroup (C). The bank raised its price target on Nvidia’s shares to $210 from $200 previously, citing an increased forecast for AI infrastructure spending.
“We believe OpenAI came to Nvidia asking for help as Nvidia has a very compelling product, and as the number of users and compute being consumed per user basis is growing,” wrote Citigroup analyst Atif Malik in a note to clients.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 38 Wall Street analysts. That rating is based on 35 Buy, two Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $212.78 implies 19.41% upside from current levels.
