Nvidia reached a market value exceeding $4 trillion last year, making it the world's largest company. The technology firm surpassed Apple and Microsoft, which had held the top positions for years prior to 2025.
The company's earnings growth accelerated as it emerged as a central figure in the artificial intelligence revolution. Nvidia designs powerful AI chips, and customers have been rapidly adding these tools to their data centers.
Investors have bought shares in leading AI companies like Nvidia, observing AI's expansion and forecasts that predict the market will soon reach trillions of dollars. As 2026 begins, investors are speculating about the company's next market capitalization milestone.
Nvidia became a trillion-dollar company just a few years ago, with its market value rising alongside revenue. Momentum increased over the past year due to its dominance in the AI market and investor interest in the technology.
In a recent quarter, revenue climbed 62% to $57 billion, while net income advanced 65% to $31 billion. The company holds $60 billion in cash, enabling investment in innovation.
Nvidia continues to release new chips annually, with the Rubin system scheduled for launch later this year. Wall Street's average estimate for annual revenue in 2026 is $213 billion.
Nvidia chief financial officer Colette Kress recently stated that demand is strong and AI product orders, including last year and this year, are surpassing the original forecast of $500 billion. Taiwan Semiconductor Manufacturing also reported high demand from customers this week.
External factors such as economic data or political decisions could impact the stock. Last year, import tariff announcements temporarily weighed on Nvidia's share price. Concerns about high valuations may resurface, potentially creating volatility.
The Motley Fool Stock Advisor analyst team identified what they believe are the 10 best stocks for investors to buy now, and Nvidia was not among them. The team noted that when Nvidia made their list on April 15, 2005, a $1,000 investment would have grown to $1,146,655.
Stock Advisor's total average return is 958%, compared to 196% for the S&P 500. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.