Nvidia Hits Another Record High — Eyes $4 Trillion Milestone

Nvidia is once again in the spotlight as its stock hits a fresh all-time high, inching ever closer to a historic milestone: a $4 trillion market cap.

On Tuesday, Nvidia ($NVDA) shares closed at $160, bringing its market cap to $3.902 trillion — just shy of Apple’s record $3.915 trillion closing valuation. The stock has now climbed 19.15% year-to-date, and a move above $160.46 would set a new global market cap record. If it reaches $163.93, Nvidia would officially become the first company in history to hit a $4 trillion valuation.

What’s Driving the Rally?

Part of the recent strength seems tied to easing concerns over U.S. chip export restrictions. Chipmakers broadly rose on Tuesday: AMD ($AMD) climbed 2.24%, Intel ($INTC) surged 7.2%, and Qualcomm ($QCOM) edged up 0.9%. But Nvidia remains firmly in the lead — and there’s solid reasoning behind it.

Citigroup just raised its data center revenue forecasts for Nvidia’s fiscal 2027 and 2028 by 5% and 11%, respectively, citing stronger-than-expected demand for sovereign AI — a growing segment dominated by government-led AI projects. Citi now expects the AI data center market to reach $563 billion by 2028, up from its earlier projection of $500 billion. Nvidia, which is deeply involved in nearly all major sovereign AI initiatives, stands to benefit the most.

Still Room to Run?

Analyst sentiment remains overwhelmingly positive. Citi’s Atif Malik just raised his price target on Nvidia from $180 to $190. Meanwhile, 34 other Wall Street analysts currently have a “Buy” rating, with an average target of $175.97 — suggesting nearly 10% upside from current levels.

The rally has been consistent since late April, powered by expectations of booming AI demand. Even CEO Jensen Huang’s May warning — that U.S. policy on chip exports to China could weigh on investor sentiment — hasn’t derailed the trend. Investors appear to be looking beyond short-term geopolitical risks and focusing on Nvidia’s long-term positioning in AI infrastructure.

My Take

Nvidia’s AI dominance is more than just buzz — it’s backed by unmatched infrastructure, deep partnerships, and an expanding technological moat. Sure, the valuation is lofty, and any slowdown in AI adoption or policy shifts could shake confidence. But if the current trajectory continues, $4 trillion might not just be a peak — it could become the new baseline.

Whether Nvidia pauses for breath or keeps climbing, one thing is clear: it's leading the AI era — and the market knows it.