Nvidia stock hits $4 trillion market cap, first to reach milestone

Investing.com - Nvidia (NASDAQ:NVDA) has become the first company to reach a $4 trillion market capitalization, according to Wedbush analysts, who described it as a "historical moment" for the chipmaker and the technology sector. This milestone comes as InvestingPro data shows unprecedented growth in the tech sector, with comprehensive analysis available through Pro Research Reports covering 1,400+ top stocks.

The achievement underscores Nvidia’s central role in the artificial intelligence revolution, with Wedbush noting that the company is "the only game in town" with its chips becoming "the new gold and oil" in the AI ecosystem.

Microsoft (NASDAQ:MSFT) is expected to join the $4 trillion club this summer, with Wedbush projecting that over the next 18 months, focus will shift to the potential $5 trillion milestone as the tech bull market continues to be driven by AI advancements.

Wedbush estimates that for every $1 spent on Nvidia chips, there is an $8-$10 multiplier effect across the broader technology ecosystem, highlighting the company’s foundational importance to AI infrastructure development.

Beyond Nvidia, Wedbush identifies cloud providers Microsoft, Google (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) as instrumental players in the AI revolution, with Amazon, Alphabet, and Meta (NASDAQ:META) named as their favorite consumer tech investments amid the ongoing AI transformation. InvestingPro data reveals Google’s strong position with a P/E ratio of 19.88, robust revenue growth of 13%, and an excellent Financial Health Score. The company maintains a solid market position with $359.71B in revenue and a 35% return on equity, demonstrating its financial strength in the competitive tech landscape.

In other recent news, Alphabet Inc. has announced several significant developments. The company rolled out its Gemini AI assistant to Wear OS smartwatches, expanding its AI capabilities to devices from manufacturers such as Pixel, Samsung (KS:005930), and Xiaomi (OTC:XIACF). This move allows users to interact with their watches using natural language and receive immediate responses. Additionally, Alphabet has introduced AI Mode to enhance its Circle to Search feature, now available on over 300 million Android devices, and is extending this functionality to mobile gaming.

In partnership with Grand Challenges Canada and McKinsey Health Institute, Google launched initiatives to leverage AI in mental health treatment, aiming to improve access and personalize care. Meanwhile, African startup Moove is nearing a $1.2 billion debt raise to expand its autonomous-driving fleet with Alphabet’s Waymo. Analyst firms TD Cowen and Truist Securities have reiterated their Buy ratings on Alphabet, emphasizing the potential of AI Mode and the resilience of Google’s core search business amid competitive pressures. Truist Securities also highlighted a favorable foreign exchange environment that could benefit Alphabet’s financial outcomes.

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