Nvidia's path to becoming the first company to achieve a $4 trillion market valuation is officially underway, according to a note from Wedbush analysts.

The leading AI chipmaker is set to release its fiscal Q3 earnings on Wednesday, and analysts at Wedbush predict another blockbuster performance. Describing Nvidia's GPUs as the "new oil and gold" of the modern economy, the firm highlighted that Nvidia is poised to surpass $1 trillion in AI-related capital expenditures (capex) in the coming years.

Record-Breaking Q3 Anticipated

Led by Daniel Ives, Wedbush analysts forecast Nvidia will exceed revenue expectations by a staggering $2 billion in Q3, coupled with strong forward guidance. These results are expected to solidify investor confidence and propel the company further along its trajectory toward its historic market cap goal.

“We believe the journey to a $4 trillion market cap and beyond by 2025 begins today,” the Wedbush note emphasized.

Blackwell Chips: The AI Revolution’s Next Chapter

Nvidia’s Blackwell chips, described as the next frontier in AI innovation, remain in high demand. Analysts anticipate “very bullish” commentary from CEO Jensen Huang during the upcoming earnings call, signaling a robust production outlook and strengthening demand for Nvidia’s cutting-edge technology.

Wedbush notes that the market continues to underestimate the long-term demand curve for AI hardware, projecting sustained growth over the next 12 to 18 months and beyond.

AI Adoption Boosts Nvidia’s Momentum

The bullish outlook is further supported by strong cloud-related AI results from tech giants like Microsoft, Amazon, and Google, which underscore Nvidia’s pivotal role in the AI ecosystem. Wedbush views this as an early phase of a transformative AI investment cycle that will reshape the tech sector for years to come.

Favorable Conditions for Tech Stocks into 2025

Wedbush believes Nvidia and other tech stocks are well-positioned for sustained growth through 2025, citing several macroeconomic and regulatory tailwinds:

• Macroeconomic Soft Landing: Expectations of steady economic growth without a major recession.
• Federal Reserve Rate Cuts: Anticipation of a more accommodative monetary policy.
• Easing Regulatory Pressure: Potential policy shifts under a Trump administration could benefit major tech companies.

Conclusion: Nvidia Leads the AI Revolution

As AI continues to transform industries, Wedbush analysts argue that Nvidia is spearheading an investment cycle with unparalleled opportunities. With its dominance in AI hardware and a strong roadmap ahead, Nvidia's ambitious journey toward a $4 trillion market cap is firmly on track.