Nvidia Hits 4 Trillion Value As Rally Notches Another Mileston
Bloomberg2 days
Nvidia Becomes First Company to Hit $4 Trillion Market Cap
Above: Nvidia logo. Image copyright: Unsplash
The Spin
Narrative A
Nvidia's $4 trillion milestone represents the natural result of being the essential infrastructure provider for the AI revolution. The company's dominance in GPU technology makes it indispensable for training advanced AI models, creating a virtual monopoly in critical AI hardware. With global AI spending expected to reach $200 billion by 2028, Nvidia is well-positioned to capture a significant share of this massive market expansion.
Narrative B
Nvidia's valuation reflects dangerous market speculation rather than sustainable fundamentals. The company's heavy dependence on AI hype makes it vulnerable to disruption from competitors like DeepSeek, which demonstrated that effective AI can be built with less expensive hardware. Trade restrictions and geopolitical tensions have already cost Nvidia billions in lost Chinese sales, highlighting the fragility of its growth model.