Nvidia's stock market value ended the trading session above $4 trillion, solidifying the chipmaker's position as Wall Street's central player in a race to dominate AI technology.

Nvidia stock fell to start the week as CEO Jensen Huang appeared to reaffirm his company’s commitment to the Chinese market.

NVIDIA delivered strong financial performance in Q1 2026 and maintained momentum in the AI sector, breaking record levels and continuing to rally despite ongoing trade tensions, export restrictions, and geopolitical uncertainty.

Nvidia remains the dominant AI chipmaker in the market, but where is the stock headed for the rest of this year and into the next?

Here's why Nvidia will likely become the first company to surpass $4 trillion in market value, what Nvidia and Microsoft must do to continue rising in price, and whether either growth stock is a buy now.

Even at record highs, Nvidia’s stock may not be as expensive as it is touted to be. Some valuation metrics suggest room for upside

Nvidia briefly eclipsed a $4 trillion valuation on Wednesday. Nvidia's growth is closely tied to the expansion of AI data centers. Investors need to see Nvidia's growth stay rapid to justify its stock price.

Historically, Nvidia has managed to sell its hardware at gross margins pushing 80%, which is a level typically seen with software companies that don't sell physical products. These immense mark-ups create an incentive for Nvidia's biggest clients (many of which are technology leaders in their own right) to replace its products wherever possible.