The Nasdaq-100 Index achieved record highs largely due to Nvidia's stock performance, which rose by 1.3% on Friday, marking its first record since May. Nvidia, which constitutes 13% of the Nasdaq and 8% of the S&P 500, is now valued at nearly $5.7 trillion.
Analysts suggest there is a 50% probability that Nvidia will surpass the $6 trillion mark by the end of this month, with a 13% chance of this occurring within the week. The likelihood of reaching this valuation by December 18 stands at approximately 67%. Additionally, there is a one-in-sixteenth chance that Nvidia could hit $7 trillion by November 20, requiring the stock price to reach $248.
Ben Emons from Highline Asset Management highlighted Nvidia's recent buyback announcement as a positive indicator of long-term confidence in AI demand. The options market shows a bias towards a bullish outlook, as evidenced by the higher implied volatility of call options compared to puts, indicating traders are hedging for a potential rally