FT – Nvidia’s AI surge: Skyrocketing valuation sparks questions about sustained growth

In the midst of an unprecedented AI boom, Nvidia's stock has soared five-fold in just over a year, making it a contender for the tech world's third most valuable concern. Analysts are divided on whether it's still a bargain as its shares surge, currently up 45% this year alone, nearing the valuation of tech giants Amazon and Alphabet. Despite uncertainties surrounding generative AI, Nvidia remains a pivotal player, evolving from a chip-focused company to a comprehensive data centre technology vendor. However, looming challenges include potential competition and a projected revenue growth slowdown in 2025.

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By Richard Waters

After rising five-fold in little more than a year, the stock continues to be propelled by the AI boom

Is there any way that a company can still be considered a bargain if its share price has risen more than five-fold in little more than a year, putting it on the verge of becoming the tech world's third most-valuable tech concern?

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