Whether you're a casual investor or trade professionally, you are likely aware of the bull run on Nvidia's (NASDAQ: NVDA) stock this year. The company has massively benefited from increased interest in artificial intelligence (AI), leading demand for its chips to soar. As a result, shares in Nvidia have skyrocketed 213% year to date.
The rally is a stark improvement to last year when the semiconductor company's stock plunged 50% over 12 months. Nvidia was hit hard by macroeconomic headwinds and subsequent declines in the PC market. However, the explosion of AI in 2023 has forced the company to reframe its business and shift focus to generative AI technology.
According to Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030. As the industry's primary chip supplier, Nvidia could have a lucrative future over the long term. However, a recent spike in its share price has made its stock an expensive option, especially compared to its competitors.
Source Fool.com