Nvidia(US:NVDA) Zhong Guo Ji Jin Bao·2025-07-09 14:39Core Viewpoint - Nvidia's market capitalization has surpassed $4 trillion, making it the first company in history to reach this milestone, driven by strong demand for AI hardware and chips [3][4]. Company Overview - Nvidia is currently the most valuable company globally, surpassing Microsoft and Apple, which previously reached a $3 trillion market cap [3]. - The company was founded in 1993 and is headquartered in California, achieving a $2 trillion market cap in February 2024 and $3 trillion in June [3]. - Nvidia became the first chip manufacturer to reach a $1 trillion market cap two years ago [3]. Market Dynamics - The demand for AI hardware has surged since the launch of ChatGPT in late 2022, significantly boosting Nvidia's profits [3]. - Major clients, including Microsoft, Meta, Amazon, and Alphabet, are expected to increase their capital expenditures to approximately $350 billion in the next fiscal year, up from $310 billion [5]. - These companies contribute over 40% of Nvidia's revenue [5]. Analyst Insights - Analysts believe Nvidia is in a unique position to maintain its leadership in the AI sector for the next decade [4]. - Loop Capital analyst Ananda Baruah raised Nvidia's target price from $175 to $250, suggesting a potential market cap of around $6 trillion [4]. - Despite concerns about spending cuts from clients developing their own chips, Nvidia is viewed as a key beneficiary of AI advancements [5][6]. Stock Performance - Nvidia's stock has increased over 20% in 2025 and has risen more than 1000% since the beginning of 2023 [6]. - The company's weight in the S&P 500 index has reached 7.5%, close to historical highs [6]. - The stock's valuation is currently around 33 times future earnings, indicating potential for further growth [7]. Investor Sentiment - Following a turbulent first half of 2025, investors are re-entering the AI sector, with Nvidia's stock rebounding after positive earnings reports and trade negotiations [7]. - Upcoming earnings reports are anticipated to further drive Nvidia's stock price higher, as analysts expect the company to exceed expectations [7].