Nvidia’s $4 Trillion Chase: Leading the AI Revolution

Last updated: July 8, 2024

jensen_huang_nvidia_ceo is speakingIn an era of tech triumph, Nvidia, Microsoft, and Apple are spearheading a breathtaking ascent towards a $4 trillion market cap.

The U.S. tech giants are riding high on a resilient economy and the AI boom, with Nvidia leading the charge from $2 trillion to $3 trillion in under 100 days. Combined, these titans are worth over $14.5 trillion, dominating 32% of the S&P 500.

Nvidia: The AI Vanguard

Many experts predict Nvidia will be the first to hit the $4 trillion mark, driven by insatiable demand for its AI-enabling hardware.

“The first one to get there is likely to be the godfather of AI Jensen [Huang] and Nvidia, because they’re the only game in town—their GPUs are the new oil or gold in the tech world with no real competition,” Ives said.

Despite warnings about Nvidia’s high valuation, its revenue and earnings have soared in tandem. In the latest quarter, Nvidia reported a record $26 billion in revenue and $14.8 billion in net income.

Louis Navellier, founder of Navellier & Associates, dismisses competition concerns, arguing that Nvidia’s “monopoly” on AI chips will sustain its growth.

Microsoft: Sustainable Growth

Microsoft, buoyed by its cloud business and investment in OpenAI, is also a strong contender. Tim Pagliara of CapWealth sees Microsoft as the more sustainable $4 trillion company.

Microsoft has multiple avenues for consistent revenue growth like Azure, Office 365, and LinkedIn. Unlike Nvidia, Microsoft isn’t solely dependent on AI mania.

Apple: Long-Term Potential

Apple, while not the first to $4 trillion, is poised for significant growth through AI integration. Consumer AI is going to go through the walls for Cupertino—they are only in the beginning of an AI-driven supercycle.” predicts Ives, citing its vast iOS device base.

New AI tools and potential folding iPhones could spur further market cap growth, according to Navellier.

Alphabet and Amazon: Chasing the Giants

Alphabet and Amazon trail with market caps of $2.36 trillion and just over $2 trillion, respectively. Both face challenges in the AI race.

Alphabet struggles with AI hallucinations and a lagging cloud business. Amazon’s AWS has lost ground to Microsoft, though CEO Andy Jassy’s recent changes could boost AI-driven growth.

Antitrust regulations, cyber threats, and a potential economic slowdown loom over these tech giants. Yet, the bullish sentiment persists.

“The tech bears with their spreadsheets and valuations will stay in hibernation mode,” Ives said. As the AI party continues, the bulls believe the dawn will reveal their triumph.

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Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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