Nvidia(US:NVDA) Jin Shi Shu Ju·2025-10-30 13:16Core Viewpoint - Nvidia has become the first company to surpass a market capitalization of $5 trillion, highlighting the unprecedented influence of AI in capital markets and the global economy [1] Group 1: Market Performance - Nvidia's stock price surge reflects the strong demand for AI, with the company reaching a market cap of $2 trillion in March 2024, $3 trillion in just 66 trading days, and $4 trillion by July 2025, surpassing both Apple and Microsoft [2] - The company's market cap now exceeds the combined market values of AMD, ARM, ASML, Broadcom, Intel, Lam Research, Micron Technology, Qualcomm, and TSMC, as well as the total market cap of the utilities, industrials, and consumer staples sectors in the S&P 500 [1] Group 2: AI Industry Dynamics - Nvidia is positioned as a key player in the AI sector, with significant partnerships and investments in companies like OpenAI, Oracle, Nokia, and Eli Lilly, which have contributed to the positive market sentiment [1] - The company has shipped 6 million units of its Blackwell chip and received an additional 14 million orders, indicating strong demand for its products [1] Group 3: Valuation Concerns - Analysts express concerns about Nvidia's high valuation, with a price-to-earnings ratio of 33 times expected earnings for the next year, compared to the S&P 500 average of 24 times [3] - Despite the high valuation, Nvidia's stock is still considered attractive by some analysts, with expectations of total sales reaching $500 billion over the next five quarters [5] Group 4: Investment Risks - There are concerns among investors and analysts about the potential for an "internet bubble" scenario, given the significant investments in data centers and chip production, alongside high debt levels and relatively limited current revenue [2] - Nvidia's access to the Chinese market remains an uncertain factor that could impact future revenue [2]