Nvidia Achieves $4 Trillion Valuation

Nvidia has become the first company to reach a $4 trillion market capitalisation, driven by soaring demand for its AI chips. The chip designer's shares rose to an all-time high, pushing it past tech giants like Microsoft and Apple. This milestone underscores Wall Street's confidence in the rapid expansion of artificial intelligence, with Nvidia's GPUs forming the backbone of this technological advancement.

Nvidia's growth has been meteoric, achieving a $1 trillion valuation in June 2023 and tripling it in approximately a year. The company's revenue for the first quarter was $44.1 billion, a 69% increase year-on-year. Nvidia anticipates revenue of around $45 billion for the following quarter. Despite potential challenges such as US government restrictions on chip exports to China, which could cost the company billions, analysts project Nvidia's revenue could reach $200 billion for the fiscal year ending January 2026.

Analysts predict continued earnings and revenue growth for Nvidia, driven by its dominance in GPU design and AI software. The company's chips are integral to AI applications across various industries, with its data centre segment experiencing substantial growth. Nvidia's stock performance has been exceptional, with analysts forecasting a price target of $172 within the next 12 months. The company's forward-looking strategy and key role in the AI revolution position it for sustained success.