Nvidia’s Stock Breakout Puts Amazon Within Sight

Just 10 days into the new year and a familiar stock is back near the top of the leaderboard: Nvidia Corp.

After struggling for months to break out above $500 a share, last year’s best performer in the S&P 500 has pushed decisively into record territory with a more than 7% advance. With its market value now at more than $1.3 trillion, it’s about $250 billion shy of Amazon.com Inc., the fourth-most valuable company in the benchmark.

The fact that investors are still bidding up Nvidia’s stock after it more than tripled in 2023 is testament to how high demand expectations continue to be for its chips used in artificial intelligence computing. Nvidia’s revenue jumped 206% in the third quarter and is projected to rise 232% in the fourth quarter, according to data compiled by Bloomberg.

“This is a very large, fast growing market and they’re dominating,” said Michael Sansoterra, chief investment officer at Silvant Capital Management. “You could look forward to 2024 as another solid year of returns for Nvidia.”

Nvidia's Breakout

On Tuesday, in an interview with a JPMorgan analyst, Nvidia Chief Financial Officer Colette Kress reaffirmed Chief Executive Officer Jensen Huang’s assertion that the company believes it can continue to grow in calendar 2025 as demand for AI-related products remains strong.