Since October 2022, Nvidia has seen its value increase by more than $4 trillion. To put that into perspective, no other company is even worth $4 trillion today.
The huge surge in value for the maker of graphics processing units (GPUs) stems from a few big tech companies spending hundreds of billions on its chips every year. The four biggest hyperscalers are set to spend around $380 billion on AI infrastructure this year, and they have guided for significant steps up in spending next year.
Nvidia is set to be the prime beneficiary of that increased spending for some time, but that doesn’t mean the stock will continue to climb. Market prices are based on what investors expect in the future, and the expectations for Nvidia remain high.