Wedbush analyst Dan Ives predicts Nvidia's market cap to hit $5 trillion, citing a watershed moment in AI chip approval.

Wedbush analyst Dan Ives predicts Nvidia's market cap to hit $5 trillion, citing a watershed moment in AI chip approval.

Wedbush analyst Dan Ives predicts Nvidia's market capitalization (market cap) to reach $5 trillion, citing a significant milestone in AI chip approval. This forecast comes as the U.S. government has approved the resumption of exports of Nvidia's H20 AI chips to China [2].

Nvidia's market cap has already surged to $4 trillion, driven by investor optimism in the AI sector. The company's stock market value has skyrocketed nearly eight-fold over the past four years, growing from $500 billion in 2021 to nearly $4 trillion [1]. Analysts predict an average price target of $178.32, implying an 8.12% upside from the current market price, with GuruFocus estimating the GF Value at $280.31 in one year, suggesting a 69.97% upside potential [1].

The approval of AI chip exports to China could significantly boost Nvidia's earnings. Wedbush Securities estimates that favorable regulation could boost Nvidia's earnings per share by 5%-7% [2]. This move is expected to revive a key growth market for Nvidia and other chipmakers. The semiconductor market is rapidly expanding as AI advances, and gaining approval and reopening the key Chinese market, even partially, shifts sentiment across the sector [2].

Nvidia's success highlights the potential of AI technology and the importance of specialized chips in driving innovation. As the company continues to lead in AI chip development, investors will be closely watching its earnings reports and stock performance. The recent earnings report, expected on August 27, 2025, is anticipated to show an EPS of $0.99, marking a 45.59% rise compared to the same quarter of the previous year [1].

References:
[1] https://www.ainvest.com/news/nvidia-company-market-capitalization-reaching-4-trillion-2507/
[2] https://finance.yahoo.com/news/what-the-china-export-easing-means-for-nvidia-amd-and-other-chips-stocks-135640925.html