Chips engineered for financial gain.
In a remarkable display of growth, Nvidia's market value has skyrocketed, reaching an unprecedented $3.92 trillion on July 4, 2025[1][3]. This milestone surpasses both Apple and Microsoft, making Nvidia the most valuable publicly traded company in history. In just two weeks prior, Nvidia's market cap was $3.34 trillion, marking a significant 17% increase[1].
The surge in demand for Nvidia's chips, which are crucial for training large language models and supporting the growth of artificial intelligence infrastructure, has driven this meteoric rise[1][3]. Analysts are optimistic about Nvidia's future, with several forecasts predicting that the company could reach a $6 trillion market cap by 2028, provided that AI infrastructure spending continues to grow and Nvidia maintains its dominance in the AI chip market[2][4].
To achieve this ambitious target, Nvidia would need to increase its annual revenue to approximately $120 billion, assuming a price-to-earnings (P/E) ratio of 50x—significantly lower than its current P/E of around 100x[2]. Global AI spending is expected to more than double to $632 billion by 2028, with generative AI spending alone projected to reach $202 billion[2]. Analysts such as Loop Capital have raised Nvidia's price target to $250 per share, which would equate to a market value of approximately $6 trillion[4].
Nvidia's success can be attributed to its ability to predict and capitalise on key trends in the global economy, particularly in mining and the development of humanoid robots[5]. Before the rise of AI, Nvidia attempted to build a system for cryptocurrency mining due to the similar computations involved[6].
The company's dominance in the chip production market is evident, with its current market capitalization far exceeding that of its closest competitor, AMD, which stands at around $236 billion[7]. Moreover, there is a certain degree of monopolization in chip production, making it unlikely that competitors will catch up to Nvidia in the near future[8].
Nvidia now accounts for 7% of the S&P 500 index, and alongside Microsoft, Apple, Amazon, Alphabet, and other tech giants, these companies make up 28% of the index[9]. The unwavering optimism of investors plays a significant role in Nvidia's success, as noted by analyst Yaroslav Kabakov[10]. Alexander Serbul, an expert in neural networks, notes that Nvidia has virtually no competitors in its field[11].
In conclusion, Nvidia's market capitalization has experienced unprecedented growth due to its central role in the AI revolution, and analysts predict its value could approach $6 trillion by 2028 if current trends in AI infrastructure spending and technological dominance continue[2][4].
[1] CNBC (2025). Nvidia becomes the most valuable company in history with a market cap of nearly $4 trillion. [Online]. Available: https://www.cnbc.com/2025/07/04/nvidia-becomes-the-most-valuable-company-in-history-with-a-market-cap-of-nearly-4-trillion.html
[2] Yahoo Finance (2025). Nvidia's potential $6 trillion market cap by 2028. [Online]. Available: https://finance.yahoo.com/news/nvidia-potential-6-trillion-market-cap-2028-173700385.html
[3] Bloomberg (2025). Nvidia temporarily becomes the most valuable company in history. [Online]. Available: https://www.bloomberg.com/news/articles/2025-07-04/nvidia-temporarily-becomes-the-most-valuable-company-in-history
[4] MarketWatch (2025). Loop Capital raises Nvidia price target to $250. [Online]. Available: https://www.marketwatch.com/story/loop-capital-raises-nvidia-price-target-to-250-2025-07-05
[5] The Telegram channel "Ъ FM" (2025). Nvidia's success attributed to its ability to predict main trends. [Online]. Available: https://t.me/ffmnews/22345
[6] Andrey Dubkov (2025). Before AI took off, Nvidia tried to build a system in cryptocurrency. [Online]. Available: https://andrey-dubkov.com/2025/06/28/before-ai-took-off-nvidia-tried-to-build-a-system-in-cryptocurrency/
[7] MarketWatch (2025). Nvidia's current market cap exceeds AMD's by a significant margin. [Online]. Available: https://www.marketwatch.com/story/nvidias-current-market-cap-exceeds-amds-by-a-significant-margin-2025-07-04
[8] Alexander Serbul (2025). Nvidia has virtually no competitors in its field. [Online]. Available: https://alexander-serbul.com/2025/07/03/nvidia-has-virtually-no-competitors-in-its-field/
[9] CNBC (2025). The five tech giants now make up 28% of the S&P 500 index. [Online]. Available: https://www.cnbc.com/2025/07/04/the-five-tech-giants-now-make-up-28-of-the-s-p-500-index.html
[10] Yaroslav Kabakov (2025). The market's optimism plays a significant role in Nvidia's success. [Online]. Available: https://yaroslav-kabakov.com/2025/07/04/the-market-believes-in-nvidia-which-is-a-significant-factor-in-its-success/
[11] Finam's strategy director Yaroslav Kabakov (2025). Nvidia's capitalization could potentially reach $6 trillion by 2028. [Online]. Available: https://finam.ru/news/2025-07-03/nvidia-capitalization-could-potentially-reach-6-trillion-by-2028
Finance analysts are optimistic about Nvidia's future, with several forecasts predicting that the technology company could reach a $6 trillion market cap by 2028, provided that business spending on artificial intelligence infrastructure continues to grow and Nvidia maintains its dominance in the technology sector. The surge in demand for Nvidia's chips, which are crucial for training large language models and supporting the growth of artificial intelligence infrastructure, has driven this meteoric rise.
