Nvidia’s AI Boom: 60 Billion Reasons to Reconsider Valuation

Nvidia's stock has surged tenfold since ChatGPT's November 2022 debut, fueled by relentless demand for its AI chips. Tech giants are funneling hundreds of billions into data centers armed with Nvidia's hardware, catapulting its market cap from $345 billion to over $4 trillion.

Despite skeptics questioning its peak, Nvidia's management just doubled down with a $60 billion commitment. The semiconductor leader now trades at its three-year average price-to-sales ratio—well below early AI frenzy levels—suggesting room for growth.

This isn't just about chips. Nvidia is becoming the backbone of AI infrastructure, with its technology embedded across major exchanges and platforms. The real question isn't whether Nvidia has peaked, but whether this is merely the first inning of AI's transformative era.