To be honest, there are exactly three companies in the arena with a market capitalization no longer below $3 trillion. These companies are Apple, Nvidia (NASDAQ: NVDA)and Microsoft — each playing a serious role in the ongoing saga of synthetic intelligence (AI).
While Apple is currently in the lead with a spherical market cap of $3.8 trillion, I looked at Nvidia because it might be among the top three to hit $4 trillion first.
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I’ll detail Nvidia’s tailwinds and provide an example of why I mediate that the semiconductor darling has some major upside in 2025.
Why Nvidia might hit $4 trillion first
In two great years, Nvidia’s industry experienced a kind of renaissance. While the company’s long-established focal point has been improved graphics performance for video games, Nvidia accidentally realized that its graphics processing unit (GPU) chipsets may be integral to the generative augmentation of artificial intelligence.
Considering Nvidia’s new forays into GPUs, the company has faced little to no competition since AI emerged as a megatrend a few years until now. As a result, the company was willing to connect excessive price vitality ranges for its chips, resulting in an epic income and increase in income for the company.
Additionally, demand for Nvidia’s Hopper GPUs has helped the company develop 90% of the GPU market, a trend that may continue to grow.
In 2025, Nvidia’s epic spherical will include one of the items: the company’s next-generation Blackwell GPU architecture. According to industry analyst Beth Kindig, Blackwell GPU production is expected to triple between the brand new quarter (Q4) and the first quarter of 2025.
Nvidia’s $NVDA Blackwell production may possibly triple by the first quarter, rising from 250,000 to 300,000 units in the fourth quarter to 750,000 to 800,000 units in the first quarter, according to Morgan Stanley.
This is an increase from the old industry estimates of 200K in the fourth quarter and 550K in the first quarter. https://t.co/J52OPyubsJ
— Beth Kindig (@Beth_Kindig) December 27, 2024
While it’s hard to gauge what these numbers will translate to when it comes to cash, I view the rising production estimates as a good proxy for Nvidia’s time frame increase.
Even as Nvidia shares gained roughly 170% in 2024, the stock took a breather during this great month. I’m conveying one situation from a slight sell-off regarding Blackwell’s launch, as obviously a lot depends on Nvidia’s ability to reach and place its location because the chip industry is the pinnacle. If Blackwell’s launch were to beat expectations (which seems likely), I think it makes sense that Nvidia stock will take a look at some of the recent lifestyles, and the stock may start moving again.
While Apple and Microsoft are each getting their own catalysts, for example because the iPhone 16 was equipped with Apple Intelligence and requires Azure cloud computing infrastructure, I create that neither of these occasions raise the same advantage when vv in contrast, what Blackwell might mean for Nvidia.
Image source: Getty Photos.
How outrageous advantage does this show for Nvidia dealers?
To be honest, Nvidia’s market cap is hovering around a spherical $3.3 trillion. To reach the $4 trillion mark, Nvidia’s ticket would be looking to increase by about 21%.
NVDA YCharts market cap files
While an excess of this size is certainly achievable, it’s crucial to remember that Nvidia ended up destroying the stock 10 for 1 earlier in 2024. With the company’s outstanding shares now tenfold, it would be very slightly more likely that Nvidia stock will rally 20% in the dark in just a few days of buying and selling.
I mediate with regard to Nvidia shares rising 20% or more, and the company prays for a consistent increase in spherical Blackwell and the entire details industry. As such, I submit that Nvidia stock will see some minor incremental moves in 2025 as more Blackwell-related files become public.
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Adam Spatacco holds positions at Apple, Microsoft and Nvidia. The Motley Fool has positions and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the creator and do not necessarily reflect the views and opinions of Nasdaq, Inc.