NVIDIA has made history, becoming the first company to briefly surpass a $4 trillion market cap, a milestone that is seen as the beginning of even greater growth.
This remarkable achievement follows a significant recovery from the sharp drop in January, which saw its market value plummet by $600 billion as concerns over China’s DeepSeek technology made investors wary about the demand for NVIDIA’s GPUs.
Despite that early setback, NVIDIA has regained momentum, benefiting from the growing AI boom. Analysts have high expectations for the company’s role in the artificial intelligence revolution, as NVIDIA’s GPUs are widely regarded as the best in the market, powering the next generation of AI innovation. In fact, Wedbush analysts have referred to NVIDIA’s AI chips as ‘the new gold and oil,’ suggesting that the company’s current $4 trillion valuation may just be the start. The investment bank predicts that investor attention will soon shift to a $5 trillion market cap, a figure it believes is within reach in the next 18 months.
Meanwhile, NVIDIA continues to face challenges due to U.S. sanctions on China, which have negatively impacted its revenue. However, the company’s CEO, Jensen Huang, has shifted its strategy to focus on sovereign AI, reassuring investors that NVIDIA can still sell its products in other global markets. This pivot has helped the company maintain its resilience despite these external pressures.
In a similar vein, Microsoft, another tech giant, has seen its stock prices rise after a strong earnings report revealed a 33% growth in Azure during the fiscal third quarter. Wedbush analysts predict that Microsoft will join NVIDIA in the $4 trillion market cap club this summer, and that AI-driven growth will continue to dominate the market in the coming years.
Wedbush analysts emphasize that AI is set to drive the most significant technological transformation in over four decades. For every dollar spent on NVIDIA, the tech ecosystem sees an $8-$10 multiplier, fueling growth across various sectors. While the bank is particularly bullish on enterprise AI, it also sees Alphabet, Amazon, and Meta as key players in consumer-facing AI. On the other hand, Apple is notably absent from Wedbush’s list of AI leaders, with some investors questioning whether the company is lagging behind in the AI race.
The bank also highlights the increasing focus on AI in IT departments, as businesses prioritize large-scale AI deployments. Microsoft’s cloud services, Amazon, and Google are at the forefront of these foundational developments, while AI use cases are being rapidly accelerated across multiple industries.