Nvidia Nears $6T Market Cap as DBS Says AI Stocks Remain Far From Bubble Territory

• Nvidia stock is nearing a $6T Nvidia market cap after reaching a new record high, keeping investors focused on its continued AI-driven growth
• DBS argues that the current AI stock bubble concerns are different from the dot-com era, with Nvidia’s earnings growth supporting its valuation.
• Nvidia valuation remains in focus as earnings are projected to grow nearly 70% next year while the stock trades at about 17 times forward earnings.

Nvidia continues to dominate the AI domains and global markets with a precise strategy. The company has now hit another milestone, with its stock closing near $239 after gaining 2.2% on October 5. Nvidia shares also touched an intraday high of $240.10, bringing Nvidia’s market cap closer to $6T. This new milestone has led investors to consider whether Nvidia may soon become the first publicly traded company with a $6T market cap. In the meanwhile, DBS believes that Nvidia’s strong earnings expectations are challenging concerns around an AI stock bubble, with its valuation and earnings growth looking different from the dot-com era.

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Nvidia Valuation Draws Attention As Shares Hit Record High

Nvidia is continuing to attract significant capital and attention as of late. The chipmaker at present is benefitting greatly from the growing AI demand.

Nvidia’s stock price has also hit a new high of around $240 during trading, bringing a new ATH for the company to ponder on. At the same time, the firm’s shares reached an intraday high of $240.10, bringing Nvidia’s market cap closer to $6T.

“BREAKING: Nvidia $NVDA has officially closed at an ALL-TIME HIGH, nearing the $6 TRILLION mark. Shares rose 2.2% today to close at $239.11, after touching a record $240.10. It’s now about 4% away from becoming the first company in history worth $6 TRILLION.”

Further data shows Nvidia’s market cap sitting at around $5.77T, a few percent away from hitting the coveted $6T mark. Investors are now keenly watching Nvidia’s next move, as the company continues to post better than expected revenue and earnings.

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DBS Says Nvidia Is Now Challenging the Dot-Com Bubble

The chief investment officer of DBS Group, Hou Wey Fook, has issued a new statement concerning Nvidia. Nvidia’s earnings outlook and valuation, according to Fook, look significantly different from the dot-com boom. The Bloomberg data cited by Hou adds how Nvidia was trading at 17 times its projected earnings over the next 12 months.

The company’s earnings are also expected to grow by nearly 70% next year, showcasing how the current metrics are different from those seen during the dot-com era and supporting his view that Nvidia is not currently in an AI bubble.

Hou later compared Nvidia’s valuation with Cisco. Cisco Systems traded nearly 100 times earnings before the dot-com crash. He argued that Nvidia’s comparatively lower earnings multiple makes it difficult to characterize the company as being in a bubble at its current valuation.

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