Nvidia Briefly Hits $4 Trillion—How Long Can the High Last?

Nvidia [NVDA] became the first company in history to briefly hit a $4 trillion market cap, reaching an intraday high of $164.42 before closing slightly below that milestone. It was a symbolic moment that underlined the company’s dominance in the AI-driven market rally.

The rise has been extraordinary. Just two years ago, Nvidia crossed the $1 trillion mark. In 2024, it raced past $2 trillion, then $3 trillion. This week, it overtook both Apple [AAPL] and Microsoft [MSFT]—who remain valued between $3 and $3.7 trillion—if only temporarily.

Wall Street remains overwhelmingly bullish. Analysts are setting price targets between $200 and $250, implying valuations nearing $6 trillion. The stock has become a cornerstone of AI-focused investing, outpacing every other tech name in speed and scale.

At the Center of the AI Boom

Nvidia [NVDA] dominates the artificial intelligence infrastructure landscape. Its GPUs power the data centers behind everything from generative AI models to robotics. Compared to peers, it holds commanding market share and unmatched pricing power.

Even at $4 trillion, the stock trades around 24× forward earnings, with a PEG ratio below 0.6. In an environment where many tech stocks run ahead of their fundamentals, Nvidia is a rare case of strong earnings catching up with investor enthusiasm.

But beyond earnings, Nvidia represents something bigger: the global race for AI dominance—and the most scalable way for investors to play it.

Risk Beneath the Surface

Still, traders should be alert. The higher the valuation climbs, the steeper the expectations. Nvidia [NVDA] is now priced for perfection. While the latest earnings showed nearly 70% year-over-year revenue growth, any miss could rattle confidence.

Geopolitics also loom. Trade tensions between the U.S. and China could jeopardize Nvidia’s ability to export high-end chips. Export bans or new restrictions could create supply chain friction.

Then there's the competition. AMD [AMD], Intel [INTC], and Taiwan Semiconductor [TSMC] are pouring billions into their own AI hardware. Apple [AAPL] is rumored to be developing in-house chips that could target Nvidia’s niche.

Nvidia’s weight in the S&P 500 now exceeds 7%, meaning its volatility increasingly drives broader index moves.

What the Milestone Means

Crossing $4 trillion—even for a few minutes—confirms Nvidia’s [NVDA] leadership in this market cycle. But it also signals how much future growth is already priced in. Whether it holds that title will depend on execution, earnings, and macro headlines.

Tips for Traders

• Nvidia [NVDA]: Consider hedging with puts or trailing stops—valuation risk is real at these levels.

• Tech ETFs: Look for exposure through ETFs holding NVDA, AAPL, and MSFT.

• Semiconductor rotation: Monitor AMD [AMD], Intel [INTC], and TSMC [TSM] for potential catch-up plays.

• AI macro plays: Balance Nvidia exposure with broader AI sector ETFs or hardware/supply chain names.

• Geopolitical news: Watch for U.S.–China headlines that could affect chipmakers.

• Event-driven strategy: Nvidia earnings or hyperscaler AI guidance could trigger rapid revaluation