Nvidia Corp. (NASDAQ:NVDA) shares rallied sharply on Tuesday and the gain helped the market cap of the AI stalwart to swell to over $2.8 trillion. Commenting on the stock move, fund manager Louis Navellier said, “It’s another NVIDIA day, in an NVIDIA year.”

The Fantastic Five: The AI theme has lifted the “Fantastic 5,” comprising Nvidia, Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), Amazon, Inc. (NASDAQ:AMZN) and Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) to “unprecedented” valuations, said Navellier in a note to clients.

‌”They are the only ones with the wherewithal to build out the databases AI requires and will likely acquire the most innovative startups that emerge as the AI market evolves,” he said. Calling Nvidia the “lead horse in the race,” the fund manager noted that the stock has gained about 30% in a month and 132% for the year to date.

See Also: How To Buy Nvidia (NVDA) Stock

Bubble In The Making? Nvidia’s appeal is that its products are required by others to executive on their AI plans, Navellier said.

Despite the extended run-up in the shares, the fund manager does not see Nvidia’s valuation as unattractive. “It’s hard to call it a bubble given NVIDIA’s P/E multiple has actually fallen in the last year thanks to volcanic earnings growth,” he said.

Nvidia’s forward P/E is currently is currently at 41.49, which pales before electric vehicle maker Tesla, Inc.’s (NASDAQ:TSLA) 71.94.

Tech venture capitalist Gene Munster, co-founder at Deepwater Asset Management, has expressed opinion in the past that AI is a bubble but he sees the bubble lasting for another three to five years.

In premarket trading on Wednesday, Nvidia fell 0.69% to $1,131.20, according to Benzinga Pro Data

Read Next: Nvidia Now Worth More Than Tesla, Exxon, Walmart, Costco, Netflix, Intel, Disney And Pepsi Combined: The Rise Of An AI Powerhouse

Photo via Shutterstock