Nvidia hits $4 trillion as AI demand fuels historic market rally

6 months ago

Nvidia became the first publicly traded company in the world to reach a $4 trillion market capitalization on Wednesday, with shares climbing to an all-time high of $164 amid surging demand for artificial intelligence technologies, as analysts highlight the company’s unmatched dominance in high-performance chips and infrastructure innovation—including a shift to liquid-cooled systems—that continues to drive investor confidence, while portfolio manager Brian Mulberry attributes the milestone to Nvidia’s consistent earnings outperformance, expanding product lineup, and leadership in compute power, all of which underscore Wall Street’s bullish outlook on AI despite earlier sector jitters from emerging competition, with Microsoft trailing as the second-most valuable U.S. company at $3.74 trillion.

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00:00NVIDIA notched a market capitalization of $4 trillion on Wednesday,

00:05making it the first public company in the world to reach the milestone

00:08and solidifying its position as one of the Wall Street's most-favorite stocks.

00:14Shares of the leading cheap designer rose as much as 2.5% to an all-time high of $164,

00:21benefiting from the ongoing search in demand for artificial intelligence technologies.

00:25Analysts said the company's dominance in high-performance chips and infrastructure innovation,

00:33including a shift to liquid-cooled system,

00:36continues to fuel investors' confidence and solidify its leadership in the AI sector.

00:42NVIDIA reaching $4 trillion in market cap today, obviously a milestone,

00:46the first company to be able to do that.

00:49And really, I think it's a story about the durability of their earnings.

00:52They've been continuing to beat earnings expectations time and time again,

00:56and the scale of the beats has still been growing.

00:59They've been able to double their revenues year over year over year.

01:02Now they're even switching product lineups,

01:05and they're finding more demand from the newer product lineup that they're bringing out.

01:10And what we're finding is on the AI trade, it's all coming down to compute,

01:15and the power of compute, it seems like NVIDIA really has cornered the market in this particular process.

01:21The highest functioning chips, but also the bigger systems.

01:25Now we're converting from air-cooled to liquid-cooled,

01:28things that are going to be, I think, easier to adopt from an infrastructure perspective.

01:32They're making it easier, better, and faster compute.

01:36All of that leads into this $4 trillion market cap that we achieved today.

01:41NVIDIA's soaring market value underscores Wall Street's confidence in the rapid growth of AI,

01:47with the company's high-performance chips forming the backbone of this technological advance.

01:52The stock's recent rally follows a sluggish start of the year,

01:55when the emergence of a Chinese discount artificial intelligence model developed by DeepSeq

02:01shook confidence in stocks linked to the sector.

02:04Microsoft is the second most valuable U.S. company.

02:07With a market capitalization of $3.74 trillion,

02:11its shares gained 1.4% on Wednesday.

Nvidia hits $4 trillion as AI demand fuels historic market rally

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