Nvidia hits new high, market value breaks through $5.2 trillion

On the eve of the earnings week for tech behemoths, Nvidia's stock price hit a new historical high once again.

On Monday, Nvidia's stock price surged by 4% in a single day, with the closing price reaching an all-time peak of $216.61, and the market value subsequently climbed to $5.26 trillion, exceeding Alphabet, the world's second-largest market value company, by more than $1 trillion.

This surge further consolidates Nvidia's dominant position in the global capital market. Alphabet, Microsoft, Amazon, and Meta will announce their earnings reports in a concentrated manner on Thursday this week, with the market's attention to AI-related performance continuing to heat up.

On the performance front, according to FactSet analyst data, the net profit margin of S&P 500 constituent companies in the first quarter is expected to reach a 15-year high.

Market Value Crown, Diversified Layout Strengthens the Moat

Nvidia currently has a market value of $5.26 trillion, far exceeding Google's parent company Alphabet's $4.2 trillion and Apple's $3.9 trillion, firmly holding the top position in global market value.

Over the past year, Nvidia's stock price has cumulatively increased by 93.34%, and the market's pricing of its growth potential continues to rise.

One of the direct catalysts driving this round of increases is the partnership between Qualcomm, a partner, and Nvidia's important customer OpenAI to announce a cooperation to jointly develop processing chips for smartphones.

This news strengthens the market's expectation for the continued expansion of demand for AI applications and further validates Nvidia's core position in the entire AI industry chain.

In addition, Nvidia's strong performance is rooted in the structural growth of AI computing power demand. Over the past twelve months, the company's revenue has increased by 65% year-on-year, with sustainable strong demand for GPU products in the fields of artificial intelligence and gaming.

At the level of cloud infrastructure, Nvidia recently announced an expansion of cooperation with Google Cloud, launching A5X bare metal instances equipped with NVIDIA Vera Rubin architecture, supporting large-scale deployment and expansion within Google Cloud data centers.

In emerging application scenarios, Nvidia also works together with Oklo Inc. and Los Alamos National Laboratory to advance nuclear fuel verification work, supporting the U.S. federal Genesis Mission mission with AI infrastructure.

This cross-domain layout indicates that Nvidia's technology penetration has extended to traditional industries such as energy.

According to InvestingPro analysis, Nvidia's stock price is still in the undervalued range relative to its fair value, implying that there is room for further upside.

Bank of America Securities maintains an "overweight" rating on Nvidia, with a target price of $300, and points out that the company's strategic transformation towards shareholder returns may bring additional value enhancement.

AI Popularization Still Shows Structural Differentiation, Concentrated in Technology and Finance

Despite the high market sentiment, research from Wolfe Research indicates that the actual adoption of AI still shows a clear industry concentration feature.

At present, only about 19% of companies apply AI to the production环节 of products and services, and the penetration rate beyond the technology and financial industries is still limited