Big Tech is racing towards a milestone that would have seems impossible only a few decades ago, a market capitalization of $4 trillion.
Nvidia Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) are members of the $3 trillion market cap club, with Google-parent Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and Amazon.com Inc (NASDAQ:AMZN) having only surpassed the $2 trillion milestone.
Nvidia could win the $4 trillion race.
With even more powerful chips on the way, the AI boom could be that powerful to drive Nvidia to $4 trillion valuation. For a moment, Nvidia even became the world's most valuable company on June 18th. But, Nvidia got dethroned quickly due to concerns over the sustainability of its skyrocketing growth. On the other hand, Microsoft and Apple are ahead in terms of market size. Looking at past numbers, Apple was the first the reach the first three of the trillion valuation milestones. Both Apple and Microsoft are as strong as ever, but Nvidia has an incredible momentum on its side. But, just because it enjoys dominating the market does not mean it should not take seriously the threat of AMD or Intel catching up at some point, although Nvidia does have the resources to defend itself and continue to innovate. Perhaps Nvidia's biggest protection lies in its expansion of revenue sources as it aims to go beyond chips and build an entire AI ecosystem, ensuring it remains in the center of things as opposed to being only one link in the chain.
Nvidia's Promise Of Blackwell
At the end of June, Nvidia CEO, Jensen Huang spoke at the company's annual general meeting and pitched the upcoming Blackwell chips as not only the most successful product in Nvidia's history but also in the entire computer history. Huan proudly spoke of reinventing Nvidia, the computer industry, and consequently, the world. The good part is that at the absolute end, Nvidia still does not have a big rival. But only time will show if the AI hype is enough to propel Nvidia to new heights, refuting doubts of concerned investors.
Putting the the economic promise of AI and the fourth Industrial Revolution aside, there is a lot that is still unknown, the market dynamic is shaped with a lot of uncertainty that is out of even Big Tech's control, all of which would undoubtedly impact their path to a $4 trillion valuation. In addition, there's the long-term tech battle to think about in a new AI-shaped era that is in the making.
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