Nvidia Corp., on track to achieve a $4 trillion market cap, has rallied back from stock declines earlier this year. Despite concerns about competition from China's DeepSeek, the company’s major clients are continuing to invest heavily in AI infrastructure. With its market cap now at $3.8 trillion, surpassing Microsoft, analysts maintain positive outlooks, citing Nvidia's unique market position and substantial pricing power. Expectations suggest AI spending could reach $2 trillion yearly by 2028, boosting Nvidia's valuation further.
"We believe that Nvidia is truly uniquely positioned, and that it will sustain its position over the next decade-plus," said Aziz Hamzaogullari, chief investment officer at Loomis, Sayles & Co.
"While it may seem fantastic that Nvidia fundamentals can continue to amplify from current levels, we remind folks that Nvidia remains essentially a monopoly for critical tech, and that it has pricing (and margin) power," wrote Loop Capital analyst Ananda Baruah.
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