Nvidia hit a $4 trillion market valuation

Nvidia as poised to become the first $4 trillion company, driven by its AI dominance. As the AI chipmaker prepares to report fiscal Q3 earnings, expectations are high for another standout performance. Analysts anticipate a $2 billion revenue beat and robust forward guidance, which could further solidify investor confidence.

Wedbush highlights Nvidiaâ€s leadership in AI capital expenditures, forecasting over $1 trillion in spending tied to its GPUs, which they describe as “the new oil and gold.â€� The companyâ€s Blackwell chips are expected to play a pivotal role, with demand and production momentum signaling strong growth potential. CEO Jensen Huangâ€s commentary during the earnings call is likely to underscore this bullish outlook.

The broader market context also supports Nvidiaâ€s trajectory. Recent AI-related results from Microsoft, Amazon, and Google demonstrate robust cloud demand, reinforcing the case for sustained AI investment. Analysts point to a favorable macroeconomic backdrop, including a potential Federal Reserve rate-cutting cycle and easing regulatory pressures, as factors that could further boost tech stocks.

Wedbushâ€s projection extends into 2025, with Nvidia positioned at the forefront of the AI revolution. They believe the market continues to underestimate the demand curve for AI-driven technologies, underscoring Nvidiaâ€s path toward its unprecedented valuation goal.

Nvidia Stock Chart Analysis

Chip stocks are down 3% since the election. Meanwhile, the S&P 500 is up by about the same measure.

Nvidia has roared back strong since its July slump, rising 45% from the major August low. The chip stock — up nearly 200% this year and up over 1100% in the last two years — hit record highs following the election.

But many of Nvidiaâ€s peers, especially smaller ones, have become a net drag on the industry and US stocks writ large since the start of the second half of the year.

Shares in chipmaker Nvidia were flat in pre-market trading ahead of the release of its highly anticipated third-quarter earnings after the bell on Wednesday.

Nvidia has become a bellwether for gauging the strength of the global push in AI, with demand for its chips as an enabler of this trend continuing to drive the companyâ€s shares higher. The stock is up 197% year-to-date, with Nvidia recently overtaking Apple to become the worldâ€s most valuable company, at a market capitalisation of $3.6tn (£2.8tn).

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