Shares of AI powerhouse Nvidia Corp. (NVDA) surged to a new all-time high on Wednesday, breaking out of a months-long trading range after a bullish analyst upgrade.
The stock closed at $154.31, topping its previous record closing high of $149.43 set in January. Nvidia shares have spent most of the past year consolidating between $100 and $150, but the breakout suggests renewed investor enthusiasm as the AI boom shows no signs of slowing and as Nvidia continues to dominate the market for AI chips.
Fueling Wednesday’s rally was a dramatic upgrade from Loop Capital Markets analyst Ananda Baruah, who raised their price target on the stock from $175 to $250, the highest target among Wall Street analysts. Overall, sentiment on the stock remains overwhelmingly positive: 87% of analysts covering Nvidia rate it a “Buy,” with an average 12-month price target of $173.
Nvidia designs GPUs, the critical hardware used to train and run artificial intelligence models like those powering ChatGPT. While the stock has seen its share of volatility in recent months—driven by concerns over U.S. trade restrictions, competitive threats and the sustainability of AI demand—those risks have yet to meaningfully dent Nvidia’s position atop the AI world.
Major customers like Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) continue to invest heavily in Nvidia’s chips, even as they create in-house alternatives.
Nvidia is now the most valuable company in the world, with a market capitalization of $3.8 trillion, just ahead of Microsoft’s $3.7 trillion. That lofty valuation means Nvidia has an outsized footprint in many major ETFs.
It now accounts for over 7% of the SPDR S&P 500 ETF Trust (SPY) and nearly 9% of the Invesco QQQ Trust (QQQ). It also dominates sector-specific funds like the VanEck Semiconductor ETF (SMH), where it represents 20% of the portfolio.
Leveraged products tied to the stock have also been popular. The GraniteShares 2x Long NVDA Daily ETF (NVDL), which seeks to deliver twice the daily return of Nvidia shares, has amassed $3.8 billion in assets. Still, NVDL remains more than 20% below its highs due to the effects of compounding and daily reset mechanics inherent to leveraged ETFs.
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