On Monday, NVIDIA Corp. (NASDAQ:NVDA) hit a new milestone, becoming the first company in history to hit $4.3 trillion in market capitalization, while widening its gulf with the company ranked second.
Check out the current price of NVDA stock here.
What Happened: On Monday, in a post on X, The Kobeissi Letter, shared Nvidia’s latest figures, calling them “absolutely insane.” The stock was up 1.87%, closing at $176.75, touching $4.3 trillion market cap, just two weeks after hitting the $4 trillion mark, becoming the first company in history to do so.
See Also: Elon Musk Wants 50 Million AI Brains—Nvidia Still Sets The Standard
The post notes that the recent surge in the stock widens its gap with Microsoft Corp. (NASDAQ:MSFT) by $500 billion, with its market cap at $3.8 trillion. “This makes Nvidia $500 BILLION larger than Microsoft, $MSFT, the 2nd largest public company in the world.”
“The craziest part,” the post says, is that “the AI revolution has barely started,” hinting that the stock still has plenty of room to run.
Why It Matters: A year ago, investor James Anderson echoed similar views, predicting that Nvidia’s market cap could reach $50 trillion within a decade.
“The potential scale of Nvidia in the most optimistic outcome is both way higher than I’ve ever seen before and could lead to a market cap of double-digit trillions. This isn’t a prediction but a possibility if artificial intelligence works for customers and Nvidia’s lead is intact,” Anderson said.
Senior analyst Dan Ives of Wedbush Securities said early this month that the tech bull market was still “in its early stages,” driven by the AI revolution. He predicted that both Microsoft and Nvidia would reach the $4 trillion mark, followed by $5 trillion over the next 18 months.
In a recent poll on Benzinga asking which company would be the first to hit $5 trillion in market cap, 75% of readers picked Nvidia, with Microsoft coming in at a distant second, with 8%.
Price Action: Nvidia shares were up 1.87% on Monday, closing at $176.75, and is up 0.63% after hours.
According to Benzinga’s Edge Stock Rankings, Nvidia scores high on Momentum and Growth, with a favorable price trend in the short, medium and long term. Click here for deeper insights into the stock, its peers and competitors.
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