Nvidia Reaches the $4 Trillion Mark. Can It Hit $5 Trillion in 2025?
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Nvidia (NVDA 1. 81%) hit a record-setting milestone on Wednesday, July 9, becoming the first publicly traded company to reach $4 trillion in market capitalization. The semiconductor company briefly reached the...
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July 9, 2025
02:33 PM
The Motley Fool
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Nvidia (NVDA 1. 81%) hit a record-setting milestone on Wednesday, July 9, becoming the first publicly traded company to reach $4 trillion in market capitalization
The semiconductor company briefly reached the landmark as Nvidia stock rose more than 2% in early trading
The market cap moved down to $3. 97 trillion by mid-afternoon
Let's put the achievement into perspective
There are only 10 companies in the world that have a market capitalization of more than $1 trillion, and Nvidia has surpassed them all in such a relatively short time
Nvidia itself was valued at less than $1 trillion just over 25 months ago
Does Nvidia seem a lock to one day reach a $5 trillion market cap
Will investors see that happening in 2025
Nvidia's amazing ride If you're into personal computers, you've known Nvidia for a while
Its graphics cessing units (GPUs) were best known for years as the go-to duct for gamers who wanted the best visual experience
Its ducts also got pulled into the growing interest in cryptocurrencies back in the late 2010s because they could be modified to help power the best cryptocurrency mining operations
But it wasn't until late 2022 and early 2023, when generative artificial intelligence (AI) entered the public realm, that Nvidia stock exploded
Nvidia's GPUs are parallel cessing chips, which means they can handle complex calculations that can be divided into smaller tasks and handled simultaneously
AI calculations are performed in parallel cessors, and Nvidia's GPUs can be combined into clusters to work faster and be more powerful
That's how the company came to dominate the AI space, as its GPUs account for roughly 92% of the market space, according to Jon Peddie Re
Nvidia reached the $1 trillion mark on May 30, 2023, and the stock skyrocketed 239% for the year
Then in 2024, growth continued as Nvidia hit the $2 trillion mark on Feb. 23, 2024, and the $3 trillion mark less than four months later on June 5, 2024
For the full year, Nvidia stock rose 171% in 2024
That brings us to now
It took a little more than a year for Nvidia's market cap to go from $3 trillion to $4 trillion, as the stock rose by 20% in that period
Can Nvidia get to $5 trillion this year
The best thing that Nvidia has going for it is that its GPUs are still flying off the shelves
CEO Jensen Huang said the company is seeing massive demand for its new Blackwell chips, which are 40 times more powerful than the Hopper chips
Nvidia also sees a massive opportunity in the AI market as companies work to build out their data centers to train large language models (LLMs) to power generative AI ducts
The company has jected data center capital expenditures to increase from $400 billion in 2024 to more than $1 trillion in 2028 -- and Nvidia, as mentioned before, is very ly to get the lion's of that
In addition, Nvidia's CUDA software platform is a huge advantage because it vides tools for developers working on AI models that are powered by Nvidia GPUs
It would be very expensive for any developer to switch to another platform, so Nvidia has a customer base that's locked in for years to come
Now let's look at the numbers
To get to a $5 trillion valuation, the Nvidia stock price would need to go up another 25% by the end of the year -- to roughly $205 per
Barclays analysts already have a price target of $200 for Nvidia, so it's not out of the question
Also, consider that the consensus analyst estimate for full-year earnings per is $4. 29, which is a 66% increase from full-year earnings in the company's fiscal 2025 (which Jan
That's more than enough to get to the magic number
And if Nvidia, which saw revenue growth up 69% year over year in the first quarter of fiscal 2026 ( April 27, 2025), can pull a similar number for the Q2 earnings report on Aug. 27, the timeline to get to $5 trillion could shorten to late this year
The bottom line It seems nearly certain that Nvidia will be a $5 trillion company, sooner rather than later
That's why I call Nvidia the one stock I would buy and hold forever
We bably won't see the $5 trillion mark until sometime in early 2026, but the August earnings report could make everyone readjust their thinking
Patrick Sanders has positions in Nvidia
The Motley Fool has positions in and recommends Nvidia
The Motley Fool has a disclosure policy.
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