Semiconductor giant Nvidia was among the big winners on Wall Street Thursday, rising nearly 10 percent. The price increase comes on the heels of an investor presentation earlier this week, where the company introduced its new initiatives and products related to artificial intelligence (AI) and the so-called global universe.
The head of wealth management Ritholtz Wealth Management, Josh Brown, believes the rise is well deserved — not least because there’s a lot more to come from Nvidia.
The transformation that is about to occur in every industry in the world associated with artificial intelligence; It honestly looks like we’re back in phase one of the internet. And Nvidia is the center of it all, he told CNBC.
According to Channel, Brown’s clear view is that Nvidia has the potential to become a “one-stop shop” for the core technology that will lead the next wave of data processing.
– He adds that the magnitude of the potential is scary.
Yes, stocks are expensive
Nvidia is already one of the largest companies in the world, with a market capitalization of more than $700 billion after its rise on Thursday. The stock is trading at expected 2022 earnings 44 times – well above the market average.
– Yes, it is expensive stock. But this is a company where the basics got back up the valuation, really every year, Brown continues on CNBC.
Nvidia closed at $281.50 when the Nasdaq closed for regular trading on Thursday. As recently as 2015, the price was under $5, considering the stock split.
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