NVIDIA's Ascent: On the Cusp of a $4 Trillion Valuation Amidst AI Boom

In a remarkable display of market momentum, NVIDIA, the semiconductor powerhouse at the heart of the artificial intelligence revolution, is on the brink of making history. The company's share price hit a new all-time high on Tuesday, extending its year-to-date gain to an impressive 15.68%. This surge positions NVIDIA to imminently surpass Apple's record closing market capitalization of $3.915 trillion and potentially become the first company ever to achieve a staggering $4 trillion valuation.

On July 8, NVIDIA's shares closed up over 1.11% at $160. Should the price edge past $160.46, it will establish a new global market cap record. The truly groundbreaking milestone of $4 trillion, however, will be reached if NVIDIA's share price climbs to $163.93.

This dramatic ascent isn't isolated. The broader American chipmaker sector also saw gains on Tuesday, partly attributed to a noticeable reduction in anxieties surrounding U.S. regulatory restrictions. AMD's shares rose by 2.24%, Intel jumped a robust 7.2%, and Qualcomm also saw a modest increase of 0.9%.

What's Fueling the Phenomenal Rally?

NVIDIA's stock has been on a consistent upward trajectory since late April, primarily propelled by fervent market expectations that the relentless demand for artificial intelligence technologies will continue to supercharge its earnings. The company's cutting-edge AI chips are the backbone of advanced AI systems, making them indispensable in an increasingly AI-driven world.

A recent Bloomberg report highlighted the significant demand from China, with Chinese technology companies outlining ambitious plans to deploy over 115,000 NVIDIA AI chips across at least 36 data centers. These facilities, including a massive one in the remote western region of Xinjiang, could support AI systems comparable to foundational models like DeepSeek if fully implemented. While the report acknowledged the likely presence of some banned NVIDIA semiconductors in China, it also expressed skepticism about the country's ability to coordinate such a high-volume, undetected covert network.

Where is NVIDIA Headed Next?

According to Anshul Jain, Head of Research at Lakshmishree Investment, NVIDIA's share price has decisively broken out of a well-defined 163-bar double bottom pattern at $159, signaling strong upside momentum.

"Bulls are now eyeing an initial target near $175, with the broader breakout objective stretching towards $190," Jain stated. He further noted that despite relatively muted trading volumes—a common characteristic in mega-cap stocks—the price action points to substantial underlying accumulation. "A sustained move above $159 confirms the reversal of prior weakness and could attract further institutional flows. Traders should watch for any dips towards the breakout level as potential buying opportunities. With robust AI and chip demand, NVIDIA’s technical setup aligns well with its fundamental tailwinds," Jain concluded.

As NVIDIA stands on the cusp of this unprecedented financial achievement, the world watches closely to see if it will indeed redefine market benchmarks and solidify its position as the undisputed leader of the AI era.