Why Is Nvidia's Stock Price So High?
Just five years ago, Nvidia's (NASDAQ: NVDA) share price was less than $50. But since then, the leading maker of graphics processing units (GPUs) has found new markets for its chip technology, namely around artificial intelligence (AI), fueling incredible growth for the business. This AI hype has led investors to bid up Nvidia's share price to about $925 to account for the company's surging revenue and growth prospects.
Ultimately, what determines whether a share price goes up or down long term is the growth, or lack thereof, of a company's revenue and profits.
And if Nvidia continues to see this unprecedented demand for its GPUs, the stock could climb even higher.
Source Fool.com
