Nvidia closed the 4th session as the strongest stock on the exchange, rising 4% to a new all-time high, while most of the market remained almost stagnant.
The S&P 500 index edged up just 0.08%, the Nasdaq Composite rose 0.2%, while the Dow Jones fell by 99 points. Nvidia's shares surged after a series of strong growth weeks since the earnings report on May 28, exceeding Wall Street's expectations.
Since the release of the report, Nvidia's stock has risen more than 12%, far exceeding the 3.6% increase of the S&P 500 during the same period. Although affected by U.S. export restrictions on chips imposed on China – Nvidia's largest market, the upward trend remains sustainable.
The surge in Nvidia's stock comes from increased investor confidence, as the company continues to assert its leadership position in the artificial intelligence (AI) chip segment.
On Wednesday, Ananda Baruah, an analyst at Loop Capital, raised the price target for Nvidia to $250, the highest on Wall Street currently. In a letter to clients, Mr. Baruah emphasized:
"While it may seem extraordinary for NVDA to continue strong growth from its current level, we remind that NVDA still holds a monopoly in critical technology with the ability to control prices and profit margins."
He also predicts the AI chip market could reach $2 trillion by 2028. If Nvidia reaches $250 per share, its market capitalization will hit about $6 trillion, doubling from its current $3.6 trillion.
Wall Street heads toward historical highs as global tensions ease.
The entire market fluctuated near last week's record levels. The S&P 500 traded just below 1% from the intraday peak of 6,147.43 points set on February 19, and maintained close to the all-time closing high of 6,144.15 points.
The Nasdaq is still down 1.3% from its December peak. According to CNBC, the market's performance this week has been supported by a ceasefire in the Middle East between Iran and Israel, following a weaker-than-expected response from Iran to U.S. airstrikes.
Donald Trump, upon returning to the White House, confirmed this peace agreement, alleviating concerns about the risk of global oil supply disruptions. As a result, the S&P 500 has increased by more than 2% over the past week.
However, the ceasefire is not entirely smooth. Immediately after its announcement, Israel and Iran continuously accused each other of violating the terms. Nevertheless, investors seem relieved that there has not been significant escalation.
Earlier this year, concerns about rising U.S. tariffs drove the S&P 500 down nearly 20% from its peak. However, recent labor and inflation figures have eased fears, and the market anticipates that the Federal Reserve (Fed) will implement supportive policies in the future.
The tech sector lagged despite the major index rising sharply.
Despite Nvidia's impressive rise, the tech sector has not benefited uniformly. CEO Worth Charting told CNBC that the upward trend is largely based on a few big names.
"Interestingly, although the tech sector is setting new highs compared to the peak on February 18, over the past 12 months, the sector has still underperformed the broader market, albeit only slightly."
He emphasized that only 5 out of 69 tech stocks increased in price since February 18, while the average stock fell by 7% and the median stock dropped by 5.5%. However, the sector is still up 5.7% this year and has increased by 14.5% in the past 3 months, primarily due to positive sentiment about AI.
Additionally, the lowest new home sales figures since October 2024 have also created a cautious mood in the market, though not significantly impacting it.
At the same time, Fed Chairman Jerome Powell continues to testify before Congress. He spoke before the Senate Banking Committee:
"This is a risk. With the role of stabilizing prices for the benefit of the American people, we feel capable of managing this risk. We have not made any decisions yet."
Powell also declined to say when the Fed would cut interest rates, despite President Trump’s continuous urging.
Source: https://tintucbitcoin.com/nvidia-lap-dinh-von-hoa-nghin-ty/
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