Nvidia (NASDAQ: NVDA) made history this week as the first company to close with a $4 trillion market capitalization, solidifying its position as the most valuable firm on the planet. As of Thursday’s close, NVDA shares finished at $164.10, up 0.75%, with a daily gain of $1.23.
In Friday’s premarket session, Nvidia pulled back slightly to $162.86, down 0.8%, in line with broader tech sector softness.
Nvidia stock performance snapshot
- Current Price (as of July 10, 3:58 p.m. ET): $164.10
- Day’s Range: $161.61 – $164.49
- 52-week Range: $86.62 – $164.50
- Market Cap: $4.0 trillion
- YTD Performance: Up sharply amid AI growth momentum
What’s driving Nvidia’s valuation?
Nvidia’s explosive growth continues to be fueled by surging demand for artificial intelligence chips, particularly for large-scale language models and generative AI applications.
- The launch of Blackwell Ultra chips has attracted high-profile partnerships like CoreWeave, with shipments expected later this year.
- Data center revenue remains a core growth driver, and CEO Jensen Huang says the AI boom is still in early innings.
- Nvidia’s forward P/E ratio of 28 is considered reasonable by many analysts given its growth trajectory.
Key upcoming catalyst: Q2 earnings
Nvidia is set to report second-quarter results on August 27, covering the period ending July 27. Wall Street expects:
- Revenue: $45 billion (up 50% YoY)
- EPS: $1.00 (up from $0.68 YoY)
Any beats on these expectations could send the stock even higher. The company has a strong track record of surpassing estimates in recent quarters.
“If Nvidia hits its Q2 marks, it could easily add another $500 billion in market cap,” said Jennifer Saibil at The Motley Fool.
China exposure remains a wildcard
Reports indicate CEO Jensen Huang is traveling to China following a meeting with President Trump. Huang is reportedly pushing to resume AI chip exports to China, which have been restricted by U.S. policy.
- Nvidia estimates that export restrictions could cost the company $15 billion in annual sales
- Trump’s proposed semiconductor tariffs also add risk, though no specific rate or date has been announced
Still, analysts say China’s influence on Nvidia’s long-term trajectory is critical — both as a sales market and a geopolitical flashpoint.
Should investors buy Nvidia now?
Despite its massive valuation, many analysts still see upside:
- Wall Street consensus: +8% over next 12–18 months
- High-end forecasts: +53% potential
- Gross margin: 70.11%, showcasing strong pricing power
“Nvidia has a deep moat in AI infrastructure, and the demand for its chips is only accelerating,” noted one Bernstein analyst.
Final thoughts
Nvidia’s dominance in AI hardware and its position as the go-to supplier for high-performance computing means NVDA stock remains one of the top names to watch in 2025. With Q2 earnings on the horizon and strategic developments in China underway, Nvidia’s next move could define not just its future — but the direction of the entire semiconductor market.