(Reuters) -Nvidia notched a market capitalization of $4 trillion on Wednesday, making it the first public company in the world to reach the milestone and solidifying its position as one of Wall Street’s most-favored stocks.
Shares of the leading chip designer were last up 1.63%, at $162.61, after reaching an all-time high of $164 earlier, as the company is benefiting from the ongoing surge in demand for artificial intelligence technologies.
COMMENTS:
MICHAEL ASHLEY SCHULMAN, CHIEF INVESTMENT OFFICER, RUNNING POINT CAPITAL, LOS ANGELES
“There’s a risk to investors of Amazon, Microsoft and Meta designing their own chips and working around Nvidia and not using them much, relying on their own designs. That’s competition. There’s also the risk of quantum computing. Nvidia says quantum computing is still 10 to 15 years away. But that’s because they don’t have a quantum chip. Other people think quantum computing may be only 5 to 7 years out and it could easily surpass Nvidia in capabilities.”
DAN MORGAN, SENIOR PORTFOLIO MANAGER, SYNOVUS TRUST
“With Nvidia representing the key stock for AI capex, it appears the AI capex deceleration has bottomed. Of the top four hyperscalers –Amazon, Microsoft, Meta and Alphabet – are collectively estimated to spend north of $330 billion in capex in 2025 to build out their AI presence. This compares to a combined CAPEX estimate spend rate of $240 Billion in 2024.”
“The biggest doubt hanging over Nvidia stock is whether sales growth will slow later this year as customers transition from the Hopper series to the shipment of the new Blackwell chips.”
GIL LURIA, ANALYST, D.A. DAVIDSON, PORTLAND, OREGON
“While it is unlikely that Nvidia will continue to dominate the AI chip market to the same extent going forward, it will continue to be the main provider of AI computer hardware into an insatiable market for AI data centers. While its valuation is towards the high end of historical ranges, Nvidia also has better visibility into a continued investment cycle than it typically does during a cycle.”
CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA
“It’s a continuing reflection of investors wanting to be on the right side of the AI movement, and Nvidia is kind of the golden child for AI investment. The company is still putting up growth numbers. It clearly is the leader in that field, and it’s a must-have if you want exposure to AI and generative AI and accelerated computing.”
ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, NEW YORK
“It is another milepost along the road in this amazing story of a company that continues to reinvent itself. It started out as being a gaming chip maker and then a crypto mining chip maker and now as a chipmaker for artificial intelligence computing power. It’s a company that’s had an amazing history over the course of the last five years and that certainly has accelerated into its market cap.”
ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, NEW YORK METROPOLITAN AREA
“It highlights the fact that Nvidia is sort of the backbone of artificial intelligence infrastructure and it is indicative of the revolution that’s going on in technology. I believe that there’s still more upside in the stock.”
“Nvidia is going to continue to lead the AI infrastructure space. It highlights the fact that companies are shifting their asset spend in the direction of AI and it’s pretty much the future of technology.”
(Reporting by Finance & Markets team)
