Nvidia Most Valuable Company, $4T Next?

News is out: Nvidia is now the world's most valuable company by market cap, having dethroned Microsoft yesterday.

Nvidia may hit $4T market cap next. Here are five reasons why:

1. Nvidia is cheaper than Microsoft and Apple if we factor in growth. Look at their PEG ratios.

2. Sell shovels and not AI. Shovel stocks like Nvidia are the ones benefiting from the huge investments made in AI.

3. The next trillion is easier. Nvidia just needs another 20% gain to hit a $4T market cap.

4. Passive funds keep piling on Nvidia. XLK is increasing NVDA stake to 20%, creating a $10B buying demand for its stock.

5. Momentum rules. Stocks that go higher have the 'energy' to go higher, whether it is logical or not. Of course, one day it will lose steam and collapse, but we won't know when.

Read more: https://drwealth.com/nvidia-keeps-running-4t-next-here-are-5-reasons-why/