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Investing.com -- Microsoft and Nvidia (NASDAQ:NVDA) are poised to become the first members of the $4 trillion market cap club, according to analysts at Wedbush.
In a note Friday, the firm said, “The race to $4 trillion market cap has begun with Microsoft (NASDAQ:MSFT) and Nvidia nearing,” adding both companies are “foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks.”
The AI Revolution is the driving force behind this market surge, said Wedbush. The firm noted that the current tech bull market “is still early” and will continue to be led by AI-driven growth.
The firm expects both Microsoft and Nvidia to hit the $4 trillion milestone this summer and anticipates the next 18 months will shift focus to the $5 trillion club.
Nvidia, led by CEO Jensen Huang, referred to by Wedbush as the “Godfather of AI,” is described as the “foundation for the AI Revolution.”
The firm emphasized, “There is one company in the world that is the foundation for the AI Revolution and that is Nvidia,” citing the unmatched demand for its chips.
Wedbush estimates that “for every $1 spent on Nvidia, there is an $8–$10 multiplier across the rest of the tech ecosystem.”
Microsoft, alongside Amazon (NASDAQ:AMZN) and Google, is also seen as a core player in AI infrastructure.
Wedbush noted that hyperscalers are seeing “major cloud and AI momentum,” while IT departments are “laser focused on the software driven use cases currently underway.”
“The AI Revolution represents the biggest tech transformation in over 40 years,” said Wedbush, naming Microsoft, Nvidia, Amazon, Alphabet (NASDAQ:GOOGL), and Meta (NASDAQ:META) as key leaders in what it calls the “Ives AI 30.”