In the past few days, Nvidia's stock price has re-entered a stage of strong growth, further consolidating its status as the "global stock king". This shows that market demand for Nvidia GPUs remains strong even as investors are making broader arrangements around the AI theme. According to Dow Jones market data,In the past four trading days, NVIDIA's stock price has risen by 14%, and its market value has increased by US$591 billion..
This increase in market capitalization exceeds Oracle’s current total market capitalization of approximately $557 billion.. Except for Nvidia, there are only 17 companies in the world with a market value of more than 550 billion US dollars.
Bernstein analyst Stacy Rasgon said investors may be recognizing recent strong capital spending commitments from large cloud service providers. This shows that demand for Nvidia chips shows no signs of slowing down.
He noted that until recently, there had been a divergence between Nvidia's stock price and other companies in the AI supply chain such as Intel, AMD and Qualcomm, and the gap had been "getting wider and wider."
Nvidia shares are up 18% so far this year, well behind the PHLX Semiconductor Index, which has gained 68% over the same period.
In this regard, Rasgon pointed out that investors are diversifying their bets into various popular areas that are regarded as beneficiaries of artificial intelligence, and the importance of related fields to AI infrastructure has not been fully recognized before.
"Funds first poured into the memory chip sector, and then moved to semiconductor equipment, optical modules, power systems, and then to the CPU field." He said, "These segmented tracks were not previously realized by the market to be driven by the wave of artificial intelligence."
However, Elazar Advisors analyst Chaim Siegel pointed out that Nvidia faces some "risks of slower growth" this year, which he believes may extend into next year.
"Although capital expenditures are increasing, memory bottlenecks and data center construction bottlenecks still exist," he said. "Demand is strong, but the growth rate may still slow down due to tight supply."
Rasgon also mentioned that investors are preparing for Nvidia’s financial report, which will be released next Wednesday.
Nvidia plans to announce its first quarter results for the fiscal year ending April 26, 2027, after the U.S. stock market closes on May 20. Wall Street generally expects Nvidia to still deliver revenue and profit growth that far exceeds expectations.
Wedbush, a well-known Wall Street investment bank, recently stated that the Q1 earnings season of U.S. stocks has sounded the alarm to technology skeptics who are watching the AI revolution from the sidelines, and Nvidia’s earnings report to be released next week should become another catalyst for the upward trend of technology stocks.