Nvidia made history by becoming the first stock to reach a $4 trillion market cap, showcasing its dominance in AI infrastructure. With a clear path to potentially hit $5 trillion by year-end, the company’s data center revenue has skyrocketed over the past two years, growing from $4.3 billion to $39.1 billion.

Nvidia’s success is largely attributed to its CUDA software platform, which has solidified its lead in the market. The company’s GPUs, originally designed for gaming, have become essential in AI data centers. Nvidia’s market share in GPUs stands at an impressive 92%, thanks to CUDA’s network effect and widespread adoption in universities and research labs.

Data center demand for Nvidia’s chips remains strong, especially in AI training and inference. The company’s CEO predicts that data center spending tied to AI could surpass $1 trillion by 2028. Nvidia continues to innovate with faster chip release cycles and expansion into the auto sector, expecting auto revenue to reach $5 billion this year.

With a market cap already at $4 trillion, Nvidia is poised for further growth, potentially reaching $5 trillion. As long as AI infrastructure spending continues to rise, Nvidia remains a compelling stock to consider. Investors should stay alert for future opportunities in the rapidly evolving tech landscape.

Read more at Nasdaq: Prediction: Nvidia Can Hit a $5 Trillion Market Cap This Year