FX.co ★ Nvidia's path to $4 trillion market cap 'starts today,' Wedbush says

Nvidia's determination is nothing short of admirable. The tech giant is poised to become the first company to achieve a remarkable $4 trillion market valuation, analysts at Wedbush predicted, highlighting the company’s standout performance in the tech arena.

In the near future, the chipmaker will report its fiscal third-quarter earnings, which are expected to be impressive. According to Wedbush analysts, Nvidia is the only company whose AI capital expenditures are projected to exceed $1 trillion in the coming years. Experts also foresee Nvidia’s graphics processors becoming "the new oil and gold in this world."

"We believe the path to a $4 trillion market cap and beyond for 2025 starts today," analysts led by Daniel Ives said in a note.

Preliminary estimates show that Nvidia’s revenue for the third quarter of 2024 could surpass current projections by $2 billion. In addition, the company will likely deliver strong forward guidance, which is expected to bolster investor sentiment.

Analysts note that the production and demand for Nvidia's Blackwell chips remain robust, fueling optimism for the chipmaker's future.

"Blackwell represents the next frontier for Nvidia and the overall AI Revolution and we believe the Street is still way underestimating the demand curve over the next 12 to 18 months and beyond," the Wedbush team said.

Ives and his team believe that the current market conditions are extremely favorable for tech stocks, including Nvidia, to continue their momentum into 2025. Support for the chipmaker is expected to come from expectations of a soft economic landing, the start of the Fed's rate-cutting cycle, and a potential easing of regulatory pressures once Donald Trump takes office.

Wedbush analysts see AI as a "transformational investment cycle" that is just getting started. In the coming years, this innovative technology could drastically reshape the global tech sector.