TLDR
- NVIDIA shares have surged 40% over three months, bringing the company within reach of a $4 trillion market cap
- The stock needs to hit $163.93 to become the first company ever to reach $4 trillion valuation
- Jim Cramer calls NVIDIA more than just a semiconductor company, citing its AI software platform as key differentiator
- Recent lifting of U.S. chip design software export restrictions to China could unlock $50 billion market opportunity
- Stock closed at $160.00, up 1.11%, with next earnings scheduled for August 27, 2025
NVIDIA stock continues its remarkable climb toward unprecedented territory. The AI chip maker sits just dollars away from becoming the first company in history to reach a $4 trillion market capitalization.
Shares closed at $160.00 on Wednesday, up 1.11% for the session. After-hours trading pushed the stock slightly higher to $160.13, keeping the company tantalizingly close to the milestone.
The math is straightforward. NVIDIA needs to trade at or above $163.93 to cross the $4 trillion threshold. At current levels, the company already commands a $3.9 trillion market cap.
The stock has been on fire lately. Shares have jumped 40% over the past three months as investors shook off concerns about potential tariffs and trade restrictions.
CEO Jensen Huang had warned in May that curbs on chip exports to China could cost the company $15 billion in sales. Those fears appear to have faded as the broader market recovered.
AI Platform Drives Valuation Premium
CNBC’s Jim Cramer has been vocal about why NVIDIA deserves its lofty valuation. He argues the company transcends traditional semiconductor metrics.
“If it were just a semiconductor [company], this stock would be at $58, not $158,” Cramer recently stated. He points to NVIDIA’s dominance in AI platforms, including its CUDA software and pre-trained AI models.
This software ecosystem sets NVIDIA apart from pure-play chip manufacturers. The company has built a comprehensive AI platform that customers rely on for everything from training to deployment.
Cramer believes the $4 trillion valuation represents “just the start” for NVIDIA. He cites growing global demand for AI infrastructure as countries invest in “sovereign AI” capabilities.
Recent supply chain improvements have also boosted confidence. The company has secured expanded international contracts, including deals in the Middle East that could drive future growth.
Analyst Targets Reflect Optimism
Wall Street analysts have been raising their price targets for NVIDIA stock. Citi now targets $190 per share, while Mizuho Securities has set a $185 target.
These upgrades reflect confidence in the expanding AI chip market. Analysts see NVIDIA maintaining its leadership position as demand accelerates across multiple sectors.
The lifting of U.S. chip design software export restrictions to China has emerged as a major catalyst. This policy change could reopen a market worth up to $50 billion for NVIDIA.
Other chip stocks showed mixed performance on Wednesday. Advanced Micro Devices gained 0.4% while Qualcomm edged up 0.2%. Broadcom and Intel both declined 0.4%.
NVIDIA’s next earnings announcement is scheduled for August 27, 2025. Investors will watch closely for guidance on AI chip demand and any updates on China market opportunities.
The company’s all-time high stands at $160.98, making current levels a stone’s throw from record territory. Breaking that level would likely accelerate momentum toward the $4 trillion milestone.
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