Nvidia stock continues to soar as analysts raise targets to $250 on AI chip demand. Can the rally hold, or is NVDA getting ahead of itself?

The stock is worth $4 trillion for a good reason. Nvidia's dominance in AI chips allows it to earn very high margins. Nvidia made $77 billion in net income on $148 billion of revenue over the last year, and its net income has increased 892% over the last three years.

Nvidia (NASDAQ:NVDA) stock was the first-ever company to hit a $4 trillion market cap. As the GPU colossus looks to $5 trillion and beyond, the big question in tech is which company will be second, and in what timeframe will number two be stepping up to the plate?

Chip giant Nvidia  (NVDA) continues writing new chapters in the AI playbook. A smashing success thus far, 2025 has been marked by blockbuster earnings and historic market cap highs.💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵Yet,

Shares of Nvidia ended up 0.75 percent at $164.10, giving it a market value of $4.004 trillion as it benefits from an ongoing surge in demand for artificial-intelligence technologies. Nvidia’s stock market value briefly peaked above $4 trillion on Wednesday before closing at about $3.97 trillion.

Nvidia became the world’s first company with a market capitalization of $4 trillion, as the Jensen Huang-led enterprise rides the artificial intelligence wave to beat titans of the tech industry, like Apple and Microsoft.

The jump on Wednesday marks a milestone for the stocks, which embarked on a stunning rally in the years since ChatPGT debuted in 2022.

Nvidia Corporation's $4T valuation is driven by AI growth, global partnerships, and quantum computing. Click to explore why it's not too late to invest in NVDA.