Nvidia Set to Break $4T Mark Driven by Soaring Demand for AI Chips

Nvidia shares are poised to close June up 15%, significantly outpacing the S&P 500 and pushing its market value near $4 trillion, according to Barron's. The AI chipmaker’s rapid ascent, rising from $1 trillion in June 2023 to $3 trillion in just under a year, reflects booming demand for its chips that power artificial intelligence. At its current pace, Nvidia could surpass the $4 trillion mark within days, making up roughly 13% of the S&P 500’s total market capitalization. Analysts expect Nvidia’s second-quarter earnings to jump 45% to 99 cents a share, far above the broader index. Robert Ruggirello of Brave Eagle Wealth Management said optimism about corporate AI investment will likely continue to drive Nvidia shares higher. While he acknowledged concerns about Nvidia’s valuation, he noted its market influence and strong momentum make it difficult for investors to stay on the sidelines.