The race to the $4 trillion market cap milestone is accelerating, with Nvidia Corp (NASDAQ:NVDA, ETR:NVD) and Microsoft Corp (NASDAQ:MSFT) now within striking distance of this historic level.
On Friday afternoon, Nvidia’s market cap was about $3.82 trillion, while Microsoft’s was about $3.7 trillion.
Analysts at Wedbush describe these two companies as the “poster childs for the AI revolution.”
They expect both Nvidia and Microsoft to hit the $4 trillion market cap club this summer, with investor focus then shifting to the $5 trillion level over the next 18 months.
The analysts believe this is just the beginning of a long-term bull market fueled by artificial intelligence.
“Over the last few years, we have discussed the AI Revolution constantly as in our opinion it represents the biggest tech transformation in over 40 years,” they wrote.
That transformation began with the launch of ChatGPT in late 2022, which sparked a wave of infrastructure investment and enterprise adoption centered on generative AI.
“The start of this $2 trillion of AI spending all began with the launch of ChatGPT at the end of 2022 and built out by Godfather of AI Jensen and Nvidia,” Wedbush wrote.
“There is one company in the world that is the foundation for the AI Revolution and that is Nvidia,” the analysts wrote, crediting CEO Jensen Huang with having “the best perch and vantage point to discuss overall enterprise AI demand.”
“They are the only game in town with their chips the new gold and oil,” the analysts added, underscoring Nvidia’s dominance in the AI semiconductor market.
The ripple effects extend far beyond Nvidia’s own sales, according to Wedbush. “For every $1 spent on Nvidia, there is an $8 to $10 multiplier across the rest of the tech ecosystem,” the analysts projected.
Meanwhile, cloud and hyperscale players like Microsoft have been critical in enabling the first phase of enterprise AI deployment. They also see Google and Amazon gaining momentum in AI through their respective cloud divisions.
On the consumer tech front, Wedbush continues to favor Amazon, Alphabet, and Meta as key beneficiaries of the AI cycle.
“It’s all about the use cases exploding which is driving this tech transformation being led by software and chips into the rest of 2025 and beyond,” Wedbush wrote.