Nvidia’s Market Cap Could Reach a Shockingly High Level, According to 1 Metric. But Is This Really Possible? | The Motley Fool

Nvidia (NVDA +1.67%) reached a major milestone last year. The artificial intelligence (AI) chip giant’s market value roared past $4 trillion: When it did this, it became the first ever to reach that level, and therefore, it also became the world’s biggest company. Nvidia slipped ahead of both Microsoft and Apple, tech giants that have each been No. 1 in terms of market value in recent years.

In spite of a lackluster start to the year, Nvidia has managed to keep this lead. This is because its big tech rivals and peers also struggled in the tough market environment. Investors fled growth stocks, particularly AI players, amid general worries — such as concerns about conflict in Iran — and as they questioned whether the AI story would indeed be as profitable as expected.

As the second quarter begins, however, the path is looking smoother for tech players. They’ve rebounded amid optimism that leaders will resume negotiations regarding the war in Iran. And investors are focusing on upcoming earnings reports, which may offer certain tech players a lift.

So now, as Nvidia begins to climb higher once again, it’s a great time to consider the company’s future market cap potential. One metric even says Nvidia’s market value could reach a shockingly high level — but is this really possible? Let’s find out.

Nvidia’s path to $4 trillion

First, let’s take a look at Nvidia’s path to $4 trillion and its growth prospects. The company is the world’s leading…