Nvidia Breakout Puts $4 Trillion Market Value Within Reach

From Yahoo Finance: 2025-06-27 16:14:00

Nvidia is on track to become the first company to reach a $4 trillion market capitalization after a record-breaking rally. Its biggest customers are driving spending on computing systems, pushing its market cap to $3.8 trillion and making it the world’s most valuable company. Shares rose to another record high.

Analysts are bullish on Nvidia’s future, with Loop Capital raising its price target to $250. The company’s unique position in critical tech and AI gear market dominance give it strong pricing power. US tech giants like Microsoft and Amazon are increasing spending on computing infrastructure, boosting Nvidia’s revenue.

While there are risks, such as reliance on Taiwan Semiconductor for chip production and competition from customers developing their own chips, Nvidia remains a key player in AI technology. Share valuation is at 32 times earnings projected over the next 12 months, compared to 22 times for the S&P 500. Despite uncertainties, analysts believe Nvidia will continue to thrive in the AI sector.



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