Nvidia's $4T Countdown: Will Next Week's Chart Print A Trillion-Dollar Breakout?

As Americans set off fireworks for the Fourth, Nvidia Corp NVDA CEO Jensen Huang might need a bigger sparkler. The stock just closed at $159.34 on Thursday, less than 3% shy of the historic $4 trillion market cap milestone. If it hits $164, it'll become the first chipmaker — and only the second U.S. company after Microsoft Corp MSFT – to touch that number.

That's not just bullish momentum. That's a whole new orbit.

The Fundamental Setup

After a brief tariff tantrum over AI chip restrictions to China, Nvidia didn't just bounce back – it rocketed. A Morgan Stanley note this week citing "very strong demand for all Blackwell form factors" poured fuel on the fire, reported The Information. And while China sales are under pressure, Europe is stepping up: Nvidia's slew of new partnerships with European AI developers could be the offset investors needed.

Read Also: Everyone Talked About Nvidia, Apple And Tesla, But This One Tech Stock Has Left Them All Behind In 2025

Competitive Smoke, No Fire

Despite whispers of rivals like Microsoft and Alphabet Inc‘s GOOGL GOOG Google designing custom AI chips, none have dented Nvidia's dominance. In fact:

• OpenAI walked back TPU hype, saying no plans to scale Google's chips.
• Microsoft hit delays in developing its own silicon.
• Even Apple's AI efforts remain niche, not threatening.

Valuation? Still Reasonable

For skeptics calling this a bubble, here's the kicker: Nvidia trades at a discount to Advanced Micro Devices Inc AMD and close enough to Broadcom Inc AVGO on forward earnings. Per Benzinga Pro data, NVDA stock currently trades at a forward earnings ratio of 36.63, while AMD and AVGO trade at 37.18 and 32.89 P/E (forward), respectively.

In a market where megacap stocks are routinely accused of being overpriced, Nvidia's numbers remain surprisingly grounded – if not a bargain, then at least justifiable.

Trading Idea: Long Into the $4 Trillion Launchpad

Chart created using Benzinga Pro

For those looking for ways to trade/position for the $4 trillion Nvidia moment, you could consider:

• Accumulate Zone: Accumulating on any dip below $158 if markets stay risk-on.
• Breakout Trade: Watching any breakout above $164 closely, targeting $170+ short-term.
• Risk Management: Place stop-loss near $152; reevaluate on new China-related headlines.

AI may be the buzzword, but Nvidia's grip on the real infrastructure behind the hype hasn't loosened one bit. With competitive threats fizzling and new demand corridors opening in Europe, the next few days could deliver a firecracker of a milestone: $4 trillion — and counting.

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