Overview

• NVIDIA stock is leading the market with strong earnings growth and a massive trillion-dollar market cap.

• Wall Street still rates NVIDIA as a strong buy despite its high valuation.

• Artificial intelligence demand is the main driver of NVIDIA's revenue and EPS growth year over year.

In the global stock market, only a few companies reach the trillion-dollar mark. These firms have massive revenue, huge cash flow, and strong investor trust. Based on market numbers, analyst ratings, growth data, and valuation, NVIDIA Corporation clearly stands above the rest. Many traders on Wall Street already view it as the top choice, even after its long run. This article explains the reasons behind the chip maker’s continued success. 

NVIDIA’s Market Size and Price Power

NVIDIA is now a $4.52 trillion market cap giant, one of the largest companies in the world today. The stock is trading around $185.81 per share, with daily volume near 160 million shares, indicating massive interest from both institutions and retail investors. Despite high valuations and price volatility, the stock has shown a positive daily change of +0.47%. The price value traded in a single day is nearly $29.75 billion, which is greater than the entire market cap of many countries' stock markets.

Earnings Growth That Stands Out

What makes NVIDIA really special is its earnings growth. The company shows diluted EPS of $4.04 for the trailing 12 months, and its EPS growth year over year is +59.03%. This is a great feat for a company already worth over $4 trillion. Most firms at this size grow earnings at 5% to 10%, rather than at 60%. This tells us the demand for NVIDIA products is still on the rise. The P/E ratio is 46.02, which is high, but investors are clearly paying for growth.

Also Read - Microsoft vs NVIDIA: Which Stock Will Reach $5 Trillion First?

Why Does Wall Street Prefer This Stock?

Analyst ratings for NVIDIA are extremely high with a ‘Strong Buy’ signal. This is not a neutral or mixed opinion. It means most analysts believe the stock still has upside, even after its massive gains. Relative volume is 1.11, showing trading activity is higher than average. Large-scale funds are not leaving this stock yet; instead, they are gradually adding to positions.

Why NVIDIA Leads the AI Economy

NVIDIA is at the center of artificial intelligence spending. Data centers, cloud companies, governments, and enterprises all depend on NVIDIA chips to run AI models. This creates a long demand cycle that can last many years. The company’s expenses increased exponentially in 2024 and 2025. Analysts expect spending to stay strong even in 2026. This is another reason why revenue and EPS numbers keep rising. Even competitors like AMD, with EPS growth of +81.00%, are still far behind NVIDIA in scale and margins.

Comparing Other Trillion-Dollar Giants

Microsoft, with a market cap of $3.5 trillion, shows EPS growth of +16.01% and a P/E of 33.49. Apple stands near $3.86 trillion with EPS growth of +22.89% and a P/E of 35. Amazon has EPS growth of +51.70% but trades at a P/E of 34.27. Alphabet stands at a $4.05 trillion market capitalization with EPS growth of +34.47%. While these companies are strong, none of them come close to NVIDIA’s current growth rate, market leadership, and analyst confidence.

Risk Still Exists, Even for the Best

Even the best stock is not risk-free. NVIDIA pays a very low dividend yield of just 0.02%, which may be disliked by income investors. The stock is also sensitive to news related to AI spending and government regulations. Any slowdown in capital spending could lead to a price drop. Additionally, a P/E of 46.02 translates to higher expectations. If earnings miss the mark, the stock could crash. This emphasizes that timing matters, even for long-term investors.

Also Read - How NVIDIA and Broadcom AI Stocks are Doing One Year After Splitting?

Why 2026 Looks Important

The year 2026 is expected to see major advancements in AI monetization. Many companies will move from testing AI to fully deploying it. This benefits NVIDIA directly as data center upgrades, new chip launches, and higher-margin products could push the company’s earnings higher again. If EPS moves from $4.04 toward $6 or $7 by 2026, today’s valuation may look inexpensive. This is why Wall Street keeps this stock at the top of the watch list.

Final Thoughts

NVIDIA is Wall Street’s top choice among all trillion-dollar stocks today. The numbers support this forecast: $4.52 trillion market cap, +59.03% EPS growth, a strong buy rating, and massive daily trading volume all point in the same direction. While risks remain, the company’s growth is still going strong. For investors looking ahead, NVIDIA is not just a stock; it is a key pillar of the modern tech economy.

FAQs

1. Why is NVIDIA important for the stock market right now?
NVIDIA plays a major role because its chips power artificial intelligence across data centers and cloud platforms.

2. Is NVIDIA already a trillion-dollar company?
Yes, NVIDIA has crossed the trillion-dollar level and now sits above $4.5 trillion in market value.

3. Does Wall Street still like NVIDIA stock?
Most analysts on Wall Street rate the stock as a strong buy, showing confidence in future growth.

4. Is NVIDIA stock expensive at current levels?
The P/E ratio is high, but investors are paying for fast earnings growth and AI dominance.

5. How does artificial intelligence affect NVIDIA earnings?
Rising AI spending increases demand for NVIDIA chips, pushing revenue and EPS higher over time.