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.

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.

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

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.

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.

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