The Race To $5 Trillion: What's Next For Nvidia?
Key Takeaways
- Nvidia on Wednesday became the world’s first company to reach a market capitalization of $4 trillion.
- Wedbush analysts led by Dan Ives, a longtime Nvidia bull, suggested the AI chipmaker’s stock could still have room to rise on its path to the $5 trillion milestone.
- Nvidia’s stock would need to reach $204.91 to get there. It touched $4 trillion at a bit under $164.
Nvidia just became the first company to reach a market capitalization of $4 trillion. One Wall Street bull thinks the next trillion bucks might not be too far away.
“Over the next 18 months the focus will be on the $5 trillion club,” Wedbush analysts led by Dan Ives told clients in a note published shortly after Nvidia’s (NVDA) record-breaking moment earlier today.
With 24.4 billion shares outstanding as of the end of May, the stock would need to reach $204.91 in order to bring Nvidia’s market cap past the $5 trillion mark. That would suggest a roughly 25% rise from the $163.93 at which the stock reached $4 trillion earlier today. Nvidia’s shares were more recently up 1.6% on the day to a bit below $163.
Nvidia, which counts many of the world’s largest tech companies among its clients, saw its market cap hit its first $1 trillion in 2023, a little over two decades after going public in 1999. Its second and third trillions came a lot sooner than the first, with both milestones reached last year.
Tech Is ‘Flexing Its Muscles’
Microsoft (MSFT) and Apple (AAPL), which have jockeyed with Nvidia for the title of world’s most valuable company over the past year, are the only two other companies with market caps currently surpassing the $3 trillion level. Amazon (AMZN) and Google parent Alphabet (GOOGL) tail behind, with market caps above $2 trillion.
Analysts at Wedbush said they expect Microsoft could be the next company to join Nvidia in the $4 trillion club sometime this summer.
Despite a tough start to the year, Nvidia’s stock has already added about a fifth of its value in 2025, regaining its footing in a historical surge as a poster child for the AI boom.
“This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth,” Wedbush said.
Wedbush isn’t alone in its view. Sixteen of the 18 brokers tracked by Visible Alpha have issued “buy” or equivalent ratings, with two “hold” ratings. Their mean target for the stock in the next 12 months is $174.