What Happens After Nvidia Is Worth $4 Trillion?
On Thursday, Nvidia (NVDA) closed at $159.34. This gave the company a market capitalization of $3.887 trillion. What happens once NVDA stock crosses the $4T level? The milestone of giving the firm the most valuable company title is only symbolic.
Nvidia’s lead over Apple (AAPL) matters. Apple announced Artificial Intelligence, yet the service and Siri do not compel its loyal fans to upgrade. In addition, Apple relies on innovating the iPhone hardware to drive sales higher. However, pricey foldable phones might struggle to grow sales. Consumers are cutting back on buying high-ticket items.
Microsoft (MSFT) earns the most valuable company title. It dominates in database, cloud, and office productivity software. While its early investments in OpenAI will rise in value, differing strategies between the two firms may slow advancements in their partnership. The firms need to work past their cultural clash. In doing so, they may sell more AI-related subscription services.
Alphabet (GOOG) continued to innovate with Gemini, its AI platform. However, investors worry that Gemini would hurt click-through rates for advertising on Google search.
YouTube is a dominant product, but ads for free users get longer over time. If people leave the platform and viewership falls, so would advertising revenue on YouTube.
Your Takeaway
Nvidia needs to continue to outpace its competitors. So far, Intel (INTC) and Advanced Micro Devices (AMD) are not a threat. Only China’s DeepSeek, which can run on lower-powered chips, threatens it. Customers may find less expensive chips for building AI services.
