Daijiworld Media Network - San Francisco
San Francisco, Jun 28: Two years after becoming the first chipmaker to hit a $1 trillion market cap, Nvidia Corp is now inching closer to an even more staggering milestone — a $4 trillion valuation. With a 67% rally from its April lows, Nvidia has surged to a market cap of $3.8 trillion, overtaking Microsoft and reclaiming its title as the world’s most valuable company.
Nvidia shares rose 1.8% on Friday, setting another record close as investors bet big on the company’s dominance in the artificial intelligence (AI) hardware space. Major tech giants like Microsoft, Meta, Amazon, and Alphabet — accounting for over 40% of Nvidia’s revenue — continue to ramp up capital spending on AI infrastructure, projected to touch $350 billion in the upcoming fiscal year.
“While it may seem fantastic, Nvidia remains essentially a monopoly for critical AI tech and commands premium pricing and margins,” said Loop Capital analyst Ananda Baruah, who recently raised the company’s price target to $250, implying a $6 trillion valuation.
Despite concerns earlier this year over competition from low-cost Chinese alternatives like DeepSeek, Nvidia’s momentum hasn’t slowed. Demand for its advanced AI accelerators remains strong, and analysts believe the chipmaker is well-positioned for sustained growth.
Aziz Hamzaogullari of Loomis Sayles remarked, “Nvidia is uniquely positioned to dominate the AI space over the next decade. This is a structural shift, and Nvidia stands as one of its greatest beneficiaries.”
Still, challenges remain. Nvidia relies heavily on Taiwan Semiconductor Manufacturing for chip production, exposing it to potential geopolitical and trade policy disruptions. Also, major clients are exploring in-house chip development to cut costs.
While some investors remain cautious about its high valuation — currently trading at 32 times projected earnings versus 22 times for the S&P 500 — supporters argue that Nvidia’s role in transforming AI-driven productivity justifies the premium.
“Even with potential disruptions, the long-term trajectory looks strong,” Hamzaogullari added. “The stock remains attractive in light of this ongoing technological revolution.”