nvidia hits $4 trillion: can the ai chip giant sustain its momentum?
New York, Thursday, 10 July 2025.
nvidia’s market capitalization exceeded $4 trillion, marking a historic moment fueled by ai optimism. the company’s stock surged over 2%, reflecting strong investor confidence. nvidia now rivals the combined value of the entire stock markets of canada and mexico. ceo jensen huang recently met with president trump. but can nvidia maintain its dominance, or will emerging competitors challenge its reign in the ai arena? analysts are watching closely.
nvidia’s market dominance
Nvidia’s rise to a $4 trillion valuation highlights Wall Street’s confidence in the rapid growth of AI [3]. The company’s high-performance chips are central to advancements in AI technology [3]. Nvidia’s market capitalization initially surpassed $4 trillion on Wednesday, making it the first company to reach this milestone [4]. The stock reached a high of $164.42 during intraday trading on July 9 [4]. However, the market cap later closed at $3.97 trillion [3].
competitive landscape and revenue potential
Nvidia’s price-earnings ratio currently stands at 52.47 [1]. The combined value of Nvidia, Microsoft, and Apple totals $10.87 trillion [1]. Nvidia’s growth has outpaced both Apple and Microsoft in terms of market capitalization gains [3]. An Nvidia analyst recently initiated coverage on the stock with a bullish outlook [1]. This optimism is further fueled by projections that AI demand will continue to grow, driving Nvidia’s stock price higher [3].
external factors and market sentiment
Investor sentiment toward Nvidia remains positive, even amid broader market concerns [5]. Investors seem unfazed by recent tariff announcements from President Trump [5]. Baird investment strategist, Mayfield, suggests the market anticipates potential trade negotiations [5]. Many investors are holding substantial cash reserves, ready to buy should tariff-related volatility arise [5]. UBS anticipates continued gains in the stock market over the next year, projecting the S&P 500 will reach 6500 [5].
challenges and future outlook
Despite the overwhelmingly positive sentiment, challenges remain for Nvidia [5]. The Federal Reserve’s June meeting minutes revealed concerns about tariffs potentially fueling inflation [5]. There were also discussions about the appropriate scale of interest rate cuts [5]. Arm reported a surge in data center clients using Arm architecture chips, reaching 70,000, a 14-fold increase since 2021 [4]. This indicates growing competition in the chip market [4].