"AI belief" shocks the world! NVIDIA Corporation (NVDA.US) market value reaches the top of the world, setting sail towards a $5 trillion market cap.

NVIDIA Corporation, known as the "AI Chip Dominator", saw its stock price hit a new all-time high on Wednesday, becoming the first company globally to reach a market value of 4 trillion US dollars, solidifying its core position in the global financial market. The stock price of NVIDIA Corporation rose nearly 3% on Wednesday, reaching a historical high of $164.42, surpassing the milestone of 4 trillion US dollars, and closing with a market value of approximately 3.98 trillion US dollars, with a stock price of $162.88. However, for investors who are long-time supporters of NVIDIA Corporation and the AI computing industry, the global "AI faith" phenomenon has not yet ended, and the "super catalyst" effect on the stock prices of leading AI companies is far from over. NVIDIA Corporation, the "AI leader," is now setting sail on the road to a 5 trillion US dollar market value, with some Wall Street investment firms even suggesting it could reach 6 trillion US dollars. Earlier this year, concerns about AI spending due to the launch of the "low-cost AI large models" by the Chinese AI emerging player DeepSeek, as well as the unprecedented trade war initiated by former President Trump's return to the White House, had put pressure on NVIDIA Corporation's stock price. However, with tech giants firmly investing heavily in AI computing infrastructure, NVIDIA Corporation's stock price rebounded significantly as the AI investment frenzy swept the globe once again. The stock has rebounded over 70% since its low in April, and has gained an incredible 1,000% since the beginning of 2023. NVIDIA Corporation currently accounts for 7.5% of the S&P 500 Index weight, approaching the highest level of market value weight influence in US stock market history. With the unprecedented AI frenzy driving NVIDIA Corporation, Microsoft Corporation, and Alphabet Inc. Class C, among other high-weighted tech giants, the Nasdaq 100 Index, considered the "global tech stock benchmark," continues to reach new highs and rise more fiercely than the S&P 500 Index. The so-called "Big Seven Tech Titans" - Apple Inc., Microsoft Corporation, NVIDIA Corporation, Alphabet Inc. Class C parent company Alphabet, Amazon.com, Inc., Meta Platforms parent company Facebook, Tesla, Inc. - dominate the entire US stock market, accounting for high weights in both the S&P 500 and Nasdaq 100 indices. These "Big Seven Tech Titans" have been leading and driving the long-term bull market of the entire US stock market since 2023. They have attracted funds from around the world with their robust revenue from AI investments, solid fundamentals, years of strong free cash flow reserves, and expanding stock buyback programs. The data from the latest financial reports show that the demand for NVIDIA Corporation's AI chips and high-performance AI server rack systems remains robust, with major customers such as Microsoft Corporation, Meta parent company Facebook, Amazon.com, Inc., and Alphabet Inc. Class C parent company Alphabet expecting a combined capital expenditure of about $350 billion in the upcoming fiscal year (with the majority expected to be invested in the field of AI computing power), which is higher than the expected capital expenditure of $310 billion in the 2025 fiscal year - this expected data means a year-on-year expenditure increase of up to 35%. These companies contribute more than 40% of NVIDIA Corporation's revenue. Companies like Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, NVIDIA Corporation, and Broadcom Inc., leaders in AI infrastructure, have recently reported incredibly strong financial results based on AI chips. Additionally, tech giants such as Meta Platforms parent company Facebook, Oracle Corporation, OpenAI, Microsoft Corporation, and Amazon.com, Inc., continue to experience explosive growth in AI computing power demand. This has led to core companies in the AI computing power industry chain reaching new highs in their stock prices, and NVIDIA Corporation becoming the first global company to surpass a market value of 4 trillion US dollars, acting as a key catalyst for the bullish trend. In terms of financial results, all performance indicators report that the market demand for the company's AI chips is incredibly strong, and forecasts suggest that despite facing restrictions on advanced chip exports to China, the outlook remains positive. According to supply chain data compiled by institutions, Microsoft Corporation, Meta, Alphabet Inc. Class C parent company Alphabet, and Amazon.com, Inc. - these four major customers contributing over 40% of NVIDIA Corporation's revenue - have reported that they continue to invest heavily in AI computing infrastructure. "The demand for NVIDIA Corporation chips is still exploding," said Brian Marlborough, client investment portfolio manager at Zacks Investment Management, adding that their products are essential infrastructure for the next stage in AI development, as the market has refocused on this point since the rapid rebound in April. Marlborough emphasized, "The last 90 days have been extraordinary, there's no doubt about that." After a volatile trend in the first half of 2025, investors are once again flocking to the AI computing power industry chain. In January of this year, the emergence of DeepSeek raised concerns in the market about a rapid slowdown in AI high spending, leading to a sharp decline in NVIDIA Corporation and other AI computing stocks. In early April, Trump's tariff threats further exacerbated global macroeconomic concerns, triggering a larger sell-off. Investors typically buy NVIDIA Corporation on dips, but at that time they quickly turned to defensive sectors. In May, with positive progress in US-China trade negotiations and investors regaining risk assets, combined with tech giants and chip leaders reporting continued explosive growth in demand for AI computing power, NVIDIA Corporation's stock price took off again; especially with the financial results of major customers showing a full-speed increase in AI spending, boosting confidence among "AI believers." By the end of the month, the company's own performance had consolidated its absolute leadership position in the AI computing power industry chain. NVIDIA Corporation's founder and CEO, Huang Renxun, is also optimistic about the global trend of AI development. In the eyes of major Wall Street banks such as Morgan Stanley, Bank of America Corp, and global asset management giant BlackRock, Inc., the recent strong financial reports from Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, ASML Holding NV ADR, and Anfennuo, together with NVIDIA Corporation, show that demand continues to soar in the AI computing power field, making it the "strongest alpha" theme in the stock market. Even though the US government has enforced restrictions on chip exports to China and sparked a new round of trade wars, this has not stopped the surge in global AI computing power demand, led by companies such as Amazon.com, Inc., Microsoft Corporation, Alibaba Group Holding Limited Sponsored ADR, and Alphabet Inc. Class C. A recent survey by Bank of America Corp showed that the AI software category in cloud infrastructure ranks first in corporate AI budget spending, indicating that the demand for global AI computing power led by cloud giants such as Amazon.com, Inc., Microsoft Corporation, Alibaba Group Holding Limited Sponsored ADR, and Alphabet Inc. Class C continues to rise. Analysts from BlackRock, Inc. and Morgan Stanley have urged investors to maintain a moderate exposure to AI-driven stocks (or buy on dips if they are not exposed), despite recent volatile fluctuations in global trade policies. BlackRock, Inc. emphasizes that the aggressive tariff policies initiated by the Trump administration do not hinder the prospects for AI computing power demand or the long-term investment return potential inherent in the "AI investment logic." In the view of BlackRock, Inc.'s stock analysis team, the tariff pressure imposed by the Trump administration cannot stop the "excess alpha attributes" brought about by the AI investment logic. The so-called "alpha" refers to actual investment returns that far exceed "beta returns" which refer to investment returns that sync with benchmark stock index returns. The synchronized returns achieved by tracking benchmark indices are also known as "beta returns" (Beta). Ken Mahoney, President of Mahoney Asset Management, commented that the next catalyst that could drive NVIDIA Corporation's stock price higher could be the upcoming tech giant earnings season. "We are looking to see if companies will exceed expectations and raise performance guidance as usual," he said. He further added that NVIDIA Corporation's valuation is currently below its ten-year average, indicating significant upside potential. The stock's expected P/E ratio is around 33x, far below its ten-year average. NVIDIA Corporation's AI chips: The new gold and oil of the era Top Wall Street institutions generally have a positive outlook on NVIDIA Corporation's stock price, with nearly 90% of analysts tracked by Bloomberg giving a "Buy" or equivalent highest rating. The Wall Street investment firm Wedbush has described NVIDIA Corporation's AI chips as the "new gold and oil of the era" in its latest research report, predicting that NVIDIA Corporation's market value will continue to rise. They emphasized that the focus of investors in the next 18 months will be on the 5 trillion US dollar mark, which they consider to be a super milestone. The Wedbush analysis team emphasized in their report that the stock market expansion led by the AI frenzy is still in its early stages compared to the internet era, representing the most significant technological change in over 40 years. Another major Wall Street bank, Citigroup, has raised NVIDIA Corporation's 12-month target price from $180 to $190, pointing out that the demand for sovereign AI (usually developed by national governments) is much higher than expected. By 2028, the market size of AI data centers will reach $563 billion, higher than the bank's previous estimate of $500 billion, which will benefit NVIDIA Corporation as the company is involved in almost all sovereign AI infrastructure. "Nowadays, every country sees AI as the core of the next industrial revolution - an emerging industry that produces intelligence and critical infrastructure for every economy in the world," said Huang Renxun during a performance discussion with analysts. From a market value perspective, there are only a few companies close to NVIDIA Corporation's estimated 4 trillion US dollar valuation: Microsoft Corporation at about 3.7 trillion US dollars, and Apple Inc. at 3.1 trillion US dollars. Global companies nearing a trillion US dollars and above Apple Inc. reached a market value of 3 trillion US dollars at the beginning of 2022, becoming the first company to reach that level. At that time, NVIDIA Corporation had a market value of only about $750 billion. Apple Inc. did not stabilize at $3 trillion until the middle of 2023, by which time NVIDIA Corporation was already at about $1 trillion, indicating a historically significant rise in NVIDIA Corporation's stock price. Brian Butler, Managing Director of Wealth Management at UBS Group AG, believes that since hitting that milestone, Apple Inc. has oscillated within a basic range, showing that traders' long-standing favorite stocks may change over time. The next stop, a market value of 5 trillion US dollars Anthropic, the generative AI leader known as the "OpenAI rival", predicts that by 2027, AI large models will be able to automate almost all white-collar jobs, bringing with it an astronomical demand for AI computing power in the inference stage. This AI computing power demand surge is expected to drive exponential growth in the artificial intelligence computing infrastructure market, with the "AI inference systems" representing NVIDIA Corporation's largest revenue source in the future, according to Huang Renxun. With the global popularity of ChatGPT and the blockbuster launch of the Sora text-to-video large model, coupled with NVIDIA Corporation's unparalleled performance for several quarters in the AI field, it signifies the start of the AI era for human society. At the end of May, during NVIDIA Corporation's financial results meeting, Huang Renxun optimistically predicted that the Blackwell series would set new records for AI chip sales, driving exponential growth in the artificial intelligence computing infrastructure market. Microsoft Corporation CEO Nadella previously mentioned the "Jevins Paradox" - when technological innovation significantly improves efficiency, resource consumption does not decrease but instead increases. Applied to the AI computing power sector, the trend of exponential growth in the scale of AI large model applications will result in an unprecedented demand for AI inference computing power. The latest financial results prove that NVIDIA Corporation remains unquestionably the "strongest seller" in the global AI field, with the company leveraging its market share of 80%-90% in the AI training/inference field. NVIDIA Corporation's AI GPU, which excels at handling parallel computing tasks and has a large number of computing cores for executing multiple high-density AI tasks simultaneously, has become the most critical hardware in the chip field. With its AI GPU + CUDA ecosystem, NVIDIA Corporation has established a broad moat in the field of AI hardware. Loop Capital, a well-known Wall Street investment firm, stated in a research report released on Wednesday that NVIDIA Corporation's market value may soon reach 6 trillion US dollars, benefiting from the long-term global AI infrastructure arms race. The firm raised NVIDIA Corporation's target stock price from $175 to $250, significantly higher than the previous Wall Street high target of $200 given by Rosenblatt, indicating that Loop Capital believes NVIDIA Corporation's market value will rise above 5 trillion US dollars and reach a historical high of approximately 6 trillion US dollars. "In our research, we see that we are entering the next 'golden wave' of AI applications, and NVIDIA Corporation is still at the forefront of the next wave of demand far exceeding expectations," the report from Loop Capital stated. The firm predicts that by 2028, cumulative spending by global cloud computing giants, tech companies, and sovereign AI on NVIDIA Corporation's AI GPU will be approximately $2 trillion. Loop Capital wrote in the research report: "Our research shows that we are entering the next wave of AI applications, and NVIDIA Corporation is still at the forefront of the next wave of demand far exceeding expectations." The firm predicts that by 2028, global cloud computing giants + tech companies + sovereign AI spending on NVIDIA Corporation's AI GPU will accumulate to approximately $2 trillion.