Chipmaker Nvidia (NVDA) is on the cusp of becoming the first publicly traded company to achieve a $4 trillion market capitalization.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Wall Street is abuzz as NVDA stock continues to hit record highs, with some analysts predicting that the technology giant is days away from reaching the $4 trillion market cap milestone. Currently, Nvidia’s market capitalization stands at $3.75 trillion, though it has been as high as $3.85 trillion recently.
After rising 15% in June and more than 40% from its April lows, Nvidia is once again the world’s most valuable publicly traded company, ahead of second place Microsoft (MSFT), which has a current market cap of $3.68 trillion. Third place Apple’s (AAPL) market cap stands at $3.14 trillion. Nvidia’s growth has been remarkable when one considers the company first reached a $1 trillion market cap in June 2023.
Rally Accelerates
Nvidia’s stock is rising as investors pile back into the artificial intelligence (AI) trade, betting that the company’s microchips and semiconductors will power the future. It took NVDA stock only 262 days to reach a $2 trillion market cap, but then only 96 days to reach the $3 trillion milestone on June 5, 2024.
Now, Nvidia is closing in on a $4 trillion valuation, which many analysts say is incredible and an achievement many on Wall Street had thought to be impossible. But based on the stock’s daily average gain of 0.8%, the $4 trillion market cap could be reached in the next five trading days, or sooner if the share price rises at a faster clip. Nvidia’s shares have gained 14% this year.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 35 Buy, four Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $175.28 implies 15% upside from current levels.
