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Nvidia’s dominance in the AI realm, powered by its chips fueling OpenAI’s ChatGPT platform, positions it as a frontrunner. The company’s H100 chip, in high demand, has sealed significant generative AI chip agreements with ServiceNow and Snowflake, bolstering its stature.

This surging demand has prompted Wall Street analysts to significantly revise Nvidia’s profit projections upward. Just three months ago, forecasts pegged Nvidia’s earnings for the current fiscal year at $10.76 per share, according to Yahoo Finance. Presently, that estimation has soared to $12.29 per share.

Anticipations for the following fiscal year indicate a staggering 67% surge in profits compared to the prior year, reaching $20.50 per share. Analysts had previously forecasted profits of $16.71 a share.

Nvidia’s stock, with a remarkable triple-digit return in 2023, now carries a trailing twelve-month price-to-earnings ratio (PE) of 65, as per Yahoo Finance data. This valuation is nearly three times higher than the trailing PE on the S&P 500, underlining its robust performance and investor confidence.