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.

Needham is the latest Wall Street giant to crank up Nvidia’s price target, and the jump is big. The firm bumped its price target to $200 from $160, while maintaining a buy rating, following Nvidia’s confirmation that it’s gearing up to resume H20 chip sales to China.

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 became the first stock to hit a $4 trillion market cap. The company continues to be the dominant player in AI infrastructure. Nvidia (NASDAQ: NVDA) isn't just leading the artificial intelligence (AI) infrastructure boom: It is the boom.

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 topped a $4 trillion market cap for the first time as investors scooped stock in the tech giant building the hardware for the generative AI boom.

The chip giant on Wednesday morning became the first company to see its market capitalization touch $4 trillion intraday, rising above that level when its shares reached $163.93 in early trading.

Nvidia made history Wednesday, reaching a milestone market capitalization. These three charts show its path to $4 trillion since the debut of ChatGPT.

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.