NVDA Stock Alert: Nvidia Races Toward $3 Trillion Mark

Even though the performance is already amazing, the tech giant Nvidia (NASDAQ:NVDA) continues to move higher toward the next logical target: a market cap of $3 trillion. Driving this narrative is an impending share split and a seemingly unassailable business. However, it is rare to hear voices expressing concern regarding NVDA stock.

Firstly, this giant climb is simply incredible. Thanks to its highly relevant business — providing graphics processors that power applications and protocols powered by artificial intelligence — NVDA stock has risen 151% year-to-date. At the time this article was written, its market capitalization was $2.97 trillion. If the figure reaches $3 trillion in the near future, it would be a record-breaker.

Based on Wall Street Journal, Apple (NASDAQ:AAPL) And Microsoft (NASDAQ:MSFT) took 719 and 650 trading sessions, respectively, to jump from the $2 trillion mark to $3 trillion. Per ReutersNVDA stock briefly reached a $2 trillion valuation on February 23.

Of course, with this intense performance comes the reality that the price per share is too expensive for retail investors who don’t have access to fractional ownership capabilities. By splitting NVDA shares, there is no fundamental change in the action itself. However, this move dilutes the stock pool making each unit cheaper, thereby increasing accessibility. This, in turn, may cause retail investors to opt out.

Business Soars for NVDA Stock, but There Are Concerns

It’s not just the stock split that has investors interested in NVDA stock. The main focus is always on business. With Nvidia providing the advanced graphics processors that top-tier companies are coveting for their AI initiatives, among other bandwidth-hungry innovations, enthusiasm never seems to wane.

As Adam Gold, founder and Chief Investment Officer at Katam Hill LLC, explains, “It’s like trying to catch a marathon runner running at full speed. They have been participating in the competition for a long time. Right now they have a big lead and they are ready to extend it this year and next year.”

It’s hard to ignore the analogy. When Advanced Micro Devices (NASDAQ:AMD) And Intel (NASDAQ:INTC) hats off, their AI competitiveness is still inferior to the capabilities of the giant Nvidia.

At the same time, some voices urge caution. JP Scandalios, senior vice president and portfolio manager at Franklin Equity Group, admitted to being “a little nervous” about the excitement over NVDA stock. However, he is optimistic about the overall long-term picture.

Additionally, Rob Arnott, Chairman and founder Research Affiliates LLC. “Where narratives become more advanced is when they extrapolate current trends into the future. Nvidia’s sales doubled in 12 months. Fantastic. How long will that last?”

Ultimately, Arnott stated that NVDA stock stakeholders should stay tuned to these developments. However, he also warned that “[b]ubbles continue until they don’t happen anymore.”

As of publication date, Josh Enomoto does not have (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.