Nvidia eclipses tech giants: new king of wall street
New York, Thursday, 26 June 2025.
Nvidia’s stock soared to unprecedented heights, overcoming concerns about chip export restrictions to China. This surge propelled Nvidia’s market capitalization to $3.76 trillion, surpassing Microsoft and Apple. Nvidia now stands as the world’s most valuable company. Investors are confident in Nvidia’s capacity to navigate geopolitical challenges. They believe that Nvidia can maintain strong growth in the AI sector. Despite export limitations and market fluctuations, Nvidia’s stock has risen approximately 11% since January, signaling robust market confidence.
Record stock performance
Nvidia’s shares experienced a notable surge, climbing 4.3% to close at $154.31 on Wednesday [1]. This surpassed the previous all-time high of $149.43, recorded on January 6 [1]. The company’s market capitalization reached $3.77 trillion, briefly overtaking Microsoft and Apple to claim the title of the world’s most valuable company [3][5]. This impressive performance reflects Wall Street’s growing confidence in Nvidia’s ability to overcome challenges related to export restrictions and maintain its growth trajectory, particularly within the artificial intelligence sector [1].
China export concerns
Despite the rally, concerns persist regarding export controls on Nvidia’s shipments to China [1]. These restrictions, implemented earlier this year, halted shipments of Nvidia’s H20 chips, the only AI processors the company could legally export to the country [1]. Nvidia anticipates a potential $8 billion loss in sales from China due to these limitations [1]. CEO Jensen Huang lamented that the “$50 billion China market is effectively closed to US industry” [1][3]. Despite these challenges, strong overall demand for Nvidia’s chips continues to fuel the company’s growth [1].
Analyst optimism and market dominance
Loop Capital analyst Ananda Baruah raised the price target on Nvidia stock to $250, projecting a potential market capitalization of $6 trillion [1]. Baruah emphasized Nvidia’s near-monopoly status in critical technologies, giving it significant pricing and margin power [1]. Nvidia dominates the market for advanced computer chips essential for powering AI models [1]. Key customers include Microsoft, OpenAI, xAI, and Meta [1]. Wall Street anticipates Nvidia’s revenue to increase by 53% to nearly $200 billion for the full year [1][3].
Strategic focus and future opportunities
At the annual shareholder meeting, CEO Jensen Huang identified robotics as Nvidia’s most significant growth opportunity beyond AI [3]. Huang envisions a future driven by billions of robots and millions of self-driving cars powered by Nvidia’s technology [5]. Nvidia is evolving from a chip company to an ‘AI infrastructure’ and ‘computing platform’ provider, offering software, cloud services, and networking chips to support AI operations [5]. This strategic shift aims to capitalize on the trillions of dollars in growth opportunities within the AI and robotics sectors [5].