$NVDA climbed to $240.93 in premarket trading, leaving it just about $8 short of the $6 trillion market-cap milestone. Analysts raised their price target straight to $345. Liquidity and momentum are fueling another push higher by bulls, but the anchor of macro funding costs is creating significant friction.
The U.S. 30-year Treasury yield surged overnight to 5.702% before retreating to 5.626%, prompting a rebound in U.S. stock futures. With long-term rates holding above 5%, discounted-cash-flow models for long-duration assets should face considerable pressure. Yet market participants are betting on an extremely aggressive outlook, hoping that future growth in data center and GPU performance can outweigh the valuation discount imposed by high interest rates.
Macro rates are tapping the brakes on tech growth stocks, while the AI leader is stepping on the gas on the back of aggressive cash-flow expectations. Breaking through the $6 trillion threshold may take only a few short-term surges on heavy volume, but against a backdrop of sharp swings in risk-free yields, whether investors keep buying at these levels will depend more on whether future earnings can deliver enough to support this high-cost discount-rate framework.
The U.S. 30-year Treasury yield surged overnight to 5.702% before retreating to 5.626%, prompting a rebound in U.S. stock futures. With long-term rates holding above 5%, discounted-cash-flow models for long-duration assets should face considerable pressure. Yet market participants are betting on an extremely aggressive outlook, hoping that future growth in data center and GPU performance can outweigh the valuation discount imposed by high interest rates.
Macro rates are tapping the brakes on tech growth stocks, while the AI leader is stepping on the gas on the back of aggressive cash-flow expectations. Breaking through the $6 trillion threshold may take only a few short-term surges on heavy volume, but against a backdrop of sharp swings in risk-free yields, whether investors keep buying at these levels will depend more on whether future earnings can deliver enough to support this high-cost discount-rate framework.