One of the high-flying stocks that’s really making its rebound today is Nvidia (NASDAQ:NVDA). In fact, NVDA stock has made a fresh new 52-week high and is now closing in on its previous all-time high set in late-2021.
That’s surprising, given all the macro headlines we have right now. With a looming debt ceiling, banks failing, inflation still running hot, and interest rates still high (though likely to pause), there’s not a really strong backdrop for growth stocks to surge.
That said, there’s a reason why investors continue to bet big on Nvidia. That one reason is simple: the rise of artificial intelligence.
Continued interest in this hyper-growth area has propelled the chipmaker to a market capitalization of roughly $750 billion at the time of writing. As a number of headline reports have noted, that means that Nvidia is now worth more than Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
Let’s dive into what to make of this impressive move higher in NVDA stock this year.
Can NVDA Stock Continue to Climb?
Interest in ways investors can play the surge in AI is at its highest point in some time. Indeed, while the wider backdrop appears to be negative, the market appears to remain very bullish about the potential of AI in disrupting key areas of the economy. So, what better way to play this trend than to buy the chipmaker providing the most high-performance AI chips?
That’s a relatively simple thesis to understand. And it’s why investors, large and small are piling into this name.
Among the more prominent investors who recently added big bets on Nvidia is Stanley Druckenmiller. His family office reportedly pumped $220 million into Nvidia. That bet, while substantial, provides Druckenmiller with an ownership of around 0.03% of this massive mega-cap stock.
It’s always interesting to see which big-named investors are piling into particular names. That said, the breadth and quality of Nvidia’s investor base is second-to-none. While the company’s valuation may be stretched here, it’s clear that many investors remain aboard for what could continue to be an impressive ride higher.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
