Nvidia Reaches the $4 Trillion Mark. Can It Hit $5 Trillion in 2025?

Core Insights - Nvidia became the first publicly traded company to reach a market capitalization of $4 trillion on July 9, 2024, although it later adjusted to $3.97 trillion [1] - The company has seen rapid growth, surpassing the $1 trillion mark just over 25 months ago, and is now among only 10 companies globally with a market cap exceeding $1 trillion [2] Company Performance - Nvidia's stock rose 239% in 2023, reaching the $1 trillion mark on May 30, 2023, and continued to grow, hitting $2 trillion on February 23, 2024, and $3 trillion on June 5, 2024 [7] - The market cap increased from $3 trillion to $4 trillion in just over a year, with a stock price increase of 20% during that period [8] Market Position - Nvidia dominates the AI market, with its GPUs accounting for approximately 92% of the market share, driven by the demand for parallel processing capabilities essential for AI calculations [6] - The company is experiencing significant demand for its new Blackwell chips, which are reported to be 40 times more powerful than previous models [9] Future Projections - Nvidia's projected data center capital expenditures are expected to rise from $400 billion in 2024 to over $1 trillion by 2028, indicating a substantial growth opportunity in the AI sector [10] - To reach a $5 trillion valuation, Nvidia's stock price would need to increase by 25% to around $205 per share, with analysts already setting a price target of $200 [12] Earnings Expectations - The consensus estimate for Nvidia's full-year earnings per share is projected to be $4.29, reflecting a 66% increase from the previous fiscal year [12] - Nvidia reported a revenue growth of 69% year over year in the first quarter of fiscal 2026, suggesting potential for continued strong performance in upcoming earnings reports [13]