Nvidia's Stock Soars Despite Trade Hurdles

Nvidia, the AI chip powerhouse, saw its shares reach a new peak on Wednesday, climbing to $154. 31 each. This marks a 4. 3% increase from the previous day's close, pushing the company's total value to $3. 76 trillion. This makes Nvidia the most valuable company globally, surpassing tech giants like Microsoft and Apple. The stock's rise comes despite ongoing concerns about U. S. restrictions on chip exports to China. Earlier this year, President Trump imposed new limits on Nvidia's shipments, particularly its H20 chips, which were the only AI processors the company could legally sell in China. These restrictions have cost Nvidia billions in potential sales, with the company estimating an $8 billion loss. However, demand for Nvidia's chips remains robust. Analysts are optimistic, with Loop Capital's Ananda Baruah raising his price target for Nvidia's stock to $250. If this target is met, Nvidia's market cap could reach an astonishing $6 trillion. Baruah noted that Nvidia's dominance in the AI chip market gives it significant pricing power, contributing to its strong financial performance. For the year, Wall Street expects Nvidia's revenue to jump by 53%, reaching nearly $200 billion. This growth is driven by the increasing need for advanced computer chips to power AI models. Nvidia's customers include major tech players like Microsoft, OpenAI, xAI, and Meta. Despite the positive outlook, the broader market showed mixed results. The Nasdaq gained slightly, while the S&P 500 remained flat, and the Dow Jones Industrial Average dipped. Nvidia's success highlights the company's resilience and its crucial role in the tech industry.