NVIDIA's stock price rose above $243 on Tuesday, setting a new record. Previously, on Monday, October 5th, the chip stock closed at $238.90, also setting a record at that time.
Calculated at that closing price, the market value of this chip manufacturer is approximately $5.8 trillion, which is about 4% short of the $6 trillion mark. To date, no company has ever reached a market value of $6 trillion.
Reports indicate that several institutions on Wall Street raised their target prices for semiconductors, which drove this round of gains. The stock price also broke through the $236 mark, a level where selling pressure had repeatedly prevented it from rising before.
However, history also provides warnings. There have been a total of five times when American companies have reached new trillion-dollar market value milestones for the first time: Apple reached 1 trillion, 2 trillion, and 3 trillion dollars respectively, while NVIDIA reached 4 trillion and 5 trillion dollars.
In the following 12 months, the return rates of these companies ranged from a decline of 31% to an increase of 27%, and their stock prices outperformed the S&P 500 index only twice.
In addition, the rising financing costs for data centers and the increasingly complex financing structure may also make NVIDIA's next phase of growth more challenging.
