Nvidia’s stock price rose more than 171% this year
Seohak Ant ranks first in net purchase… Tesla is also ahead
“Nvidia is unpredictable now. It feels like there is no ceiling.” This is a post that was recently posted on a stock-related community. As the stock price of AI semiconductor leader Nvidia continues to surge due to the artificial intelligence (AI) craze, love calls from Seohak ants are also enthusiastic.
According to the Korea Securities Depository on the 22nd, $297.68 million (413.3 billion won) worth of Nvidia was purchased from Seohak Ant over the course of a week from the 14th to the 20th. This amount is the highest net purchase during this period.
If we expand the period, the Seohak ants bought 1.427 billion dollars (1.9835 trillion won) worth of Nvidia this year alone until the 20th. Compared to Tesla ($1,131.29 million) and Microsoft ($565.95 million), which ranked second and third in net purchases during this period, Seohak Ants’ interest in Nvidia is exploding.
On the New York Stock Exchange on the 20th (local time), Nvidia closed at $130.78, down 3.54% from the previous day. As of the closing price on this day, the market capitalization was $3.217 trillion, lower than Microsoft ($3.0313 trillion), once again losing the top spot in market capitalization.
The stock price showed a slight weakness on this day, but on the 18th, NVIDIA’s stock price rose 3.51%, reaching an all-time high ($135.58) and showing a strong upward trend, ranking first in market cap for the first time. Looking at the stock price fluctuation rate compared to the beginning of the year, Nvidia rose by 171.50%.
NVIDIA’s stock price began to show significant growth at the end of November 2022, when OpenAI unveiled the interactive AI chatbot ‘ChatGPT’. As it became known that NVIDIA’s GPUs play a key role in training language models for generative AI such as ChatGPT, the stock price began to surge.
On the 10th (local time), when NVIDIA carried out a split that split the par value of the stock 10 to 1, the investment enthusiasm of Seohak ants heated up again and the buying trend increased significantly. This is because stock splits do not affect the fundamentals of a company but increase accessibility to individual investors, which usually acts as a positive factor for stock prices.
NVIDIA’s position as an AI platform provider is evaluated to be solid. Kim Seon-woo, a researcher at Meritz Securities, said, “NVIDIA predicts that the added value that AI services will create through Computex is $100 trillion. “We emphasize our role as a provider of an ‘AI factory’ platform rather than simply a semiconductor supplier,” he said. “Despite the entry of competitors into the AI graphics processing unit (GPU) market, NVIDIA’s dominance is solid.”
However, Nvidia’s rapid pace in the market is reminiscent of the nightmare of the dot-com bubble 20 years ago.
In March 2000, when the dot-com boom was in full swing, Cisco, an Internet network equipment company, ranked first in market capitalization, surpassing Microsoft, which was also first at that time. Since then, Cisco’s stock price has never recovered to the high point it hit in March 2000.
“The enthusiasm for AI has all the hallmarks of a bubble,” said Neil Shearing, chief economist at Capital Economics. “It will help boost U.S. stocks over the next year and a half, but the bubble will eventually burst, and U.S. stocks will fall significantly thereafter.” “We will record poor performance.
