Ryan Vlastelica

Fri, Jun 27, 2025, 1:14 PM5 min read

(Bloomberg) -- Two years after Nvidia Corp. made history by becoming the first chipmaker to achieve a $1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach $4 trillion.

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After the emergence of China’s DeepSeek sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence infrastructure were set to slow, Nvidia shares have rallied back to a record.

Its biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. A 67% gain from an April low has pushed its market capitalization to $3.8 trillion, overtaking Microsoft Corp. at $3.7 trillion to again become the world’s most valuable company. Nvidia shares rose 1.8% Friday to close at another record high.

With a broadening customer base clamoring for Nvidia’s latest AI accelerators and competitors still distant, bulls are betting the chipmaker’s shares have plenty of room to run.

“We believe that Nvidia is truly uniquely positioned, and that it will sustain its position over the next decade-plus,” said Aziz Hamzaogullari, founder, chief investment officer and portfolio manager of the growth equity strategies team at Loomis, Sayles & Co.

Hamzaogullari isn’t alone. This week, Loop Capital analyst Ananda Baruah raised Nvidia’s price target to $250 from $175, a level that would equate to a roughly $6 trillion market value. Baruah, who has a buy rating on the stock, expects annual AI spending from various types of customers to rise to nearly $2 trillion by 2028.

“While it may seem fantastic that Nvidia fundamentals can continue to amplify from current levels, we remind folks that Nvidia remains essentially a monopoly for critical tech, and that it has pricing (and margin) power,” Baruah wrote in a research note on June 25.

The bullish sentiment behind Nvidia and other makers of AI gear is a stark reversal from earlier in the year when the emergence of advanced chatbots like DeepSeek, developed relatively cheaply in China, sparked fears that Nvidia’s customers would cut spending. Instead, US tech giants are plowing even more money into computing infrastructure.

Microsoft, Meta, Amazon.com Inc. and Alphabet Inc. are projected to put about $350 billion into capital expenditures in their upcoming fiscal years, up from $310 billion in the current year, according to the average of analyst estimates compiled by Bloomberg. Those companies account for more than 40% of Nvidia’s revenue.