Nvidia Breaks $4 Trillion Barrier—Benzinga Poll Predicted It First
News Summary
NVIDIA Corporation (NVDA) recently made history by becoming the first company to reach a $4 trillion market capitalization. This milestone was accurately predicted by a Benzinga poll, where nearly 80% of readers chose NVIDIA to hit the mark before Microsoft (MSFT) and Apple (AAPL). As of July 9, NVIDIA's market cap stood at $4.00 trillion, compared to Microsoft's $3.76 trillion and Apple's $3.14 trillion. In terms of stock performance, NVIDIA has surged over 1,400% in the last five years, significantly outperforming Microsoft's 135% and Apple's 119%. The article also highlights a separate Benzinga poll related to President Trump's plan to provide parents with $1,000 for their children's 18-year investments, where 21% of readers selected NVIDIA among the “Magnificent 7” stocks, indicating strong market confidence in its future growth. NVIDIA CEO Jensen Huang noted that the company's Blackwell AI supercomputer is in full-scale production and demand for AI infrastructure is “incredibly strong.”
Background
NVIDIA Corporation, founded in a Denny's restaurant, has grown to become one of the world's most valuable companies, claiming the title multiple times over the past two years. The company first surpassed the $1 trillion market capitalization milestone in May 2023 and rapidly achieved further milestones over the subsequent two years. NVIDIA has regularly vied with Microsoft and Apple for the title of the world's most valuable company. By reaching the $4 trillion mark, NVIDIA has outpaced both Microsoft and Apple, breaking Apple's streak as the first U.S. company to achieve $1 trillion, $2 trillion, and $3 trillion valuations. Following Donald Trump's re-election in November 2024, his administration has introduced a plan to provide parents with $1,000 to invest for their children at birth, to be held for 18 years. This policy underscores the growing emphasis on long-term investment and the prominence of technology stocks in public investment preferences.
In-Depth AI Insights
To what extent does NVIDIA's $4 trillion valuation truly reflect fundamental growth versus market speculation or AI hype? - NVIDIA's valuation surge is indeed underpinned by strong fundamentals, primarily its near-monopolistic position in AI computing infrastructure. The company's technological leadership in AI chips, GPUs, and the associated software ecosystem is undeniable, especially given the explosive growth of large language models and generative AI, where its products are indispensable. - However, market sentiment and future growth expectations may also contribute to an inflated valuation. The current AI frenzy has led investors to pay a premium for future AI adoption and applications, which could introduce some valuation froth. Close attention is needed to see if the company's actual revenue and profit growth can consistently match or exceed market expectations, and how quickly competitors can catch up. Beyond its leadership in AI, what deeper market structural shifts or investment theme changes does NVIDIA's surpassing Microsoft and Apple reflect? - This reflects a strategic shift in investment focus from “consumer-facing platforms” to the “infrastructure layer.” Historically, the success of Apple and Microsoft heavily relied on their vast consumer ecosystems and software services. NVIDIA's ascendancy, however, signals the increasing importance of data centers, AI computing power, and underlying hardware as the new economic foundation, becoming central to technological progress and corporate competitiveness. - Furthermore, it may indicate a re-pricing of “asset-heavy” technology and “compute scarcity.” Unlike software and platform companies, NVIDIA's business is more dependent on advanced manufacturing and supply chain integration. The scarcity of its products, especially in the AI era, is particularly pronounced, leading to higher pricing power and profit margins. Considering President Donald Trump's investment plan and public preference for NVIDIA, what impact might this have on retail investment behavior and market capital flows, particularly for long-term AI investments? - President Trump's investment plan, though small in individual amounts, carries symbolic weight in encouraging long-term, early investment, particularly favoring “star” tech stocks. The Benzinga poll results suggest that among ordinary investors, NVIDIA has become synonymous with long-term growth and wealth accumulation, a public perception that could draw more retail capital into AI-related sectors. - This sustained influx of retail funds could provide a more stable funding base for leading AI companies like NVIDIA and potentially incentivize other tech firms to increase their AI investments, further solidifying AI's position as a core investment theme for the next decade. In the long run, this could accelerate the penetration and application of AI technology across various industries, creating a positive feedback loop.