Nvidia has returned to a $5.4 trillion market cap; what’s truly frightening is that AI is still expanding

Nvidia has reclaimed a $5.4 trillion market cap, and the market has once again begun discussing a familiar question: Has Nvidia become too expensive to touch?
My answer is: Whether it is expensive depends on what you use to measure it.
If you look only at market cap, $5.4 trillion is indeed a staggering figure. But viewed against the broader backdrop of the AI industry boom, what Nvidia is truly enjoying is not the valuation of an ordinary chip company, but the premium brought by the supercycle of AI infrastructure.
The latest earnings report showed Nvidia’s quarterly revenue reached $96.2 billion, up 106% year over year, while the company also provided strong guidance for continued revenue growth.
That is the core reason the market is willing to continue assigning it a high valuation.
Put simply:
Previously, investors bought Nvidia by betting on GPU demand growth.
Now, investors buy Nvidia by betting that global AI infrastructure will continue expanding for years or even longer.
These are two completely different investment theses.
As AI models become increasingly complex, inference demand continues to rise, and more companies deploy AI in production environments, demand for computing resources is unlikely to suddenly disappear.
In fact, once AI achieves true mass commercialization in the future, demand for computing power may not decrease, but increase further.
Of course, the risks are also real.
AMD, Google’s TPUs, Amazon’s in-house chips, and custom AI chips developed by giants such as OpenAI and Meta are all trying to reduce their dependence on a single supplier.
Nvidia’s biggest moat today is not just the GPU itself, but also CUDA, its software ecosystem, developer tools, networking, and its entire AI computing platform.
So what the market should really be watching is not “Can Nvidia continue to rise?” but:
Can Nvidia’s ecosystem moat continue to expand?
If the answer is yes, then $5.4 trillion may be just one milestone in the AI supercycle.
If the answer begins to change, even the most impressive results could face valuation compression.
So I will not blindly turn bearish just because of a $5.4 trillion market cap, nor will I mindlessly chase higher prices simply because the stock is rising.
After all, the most interesting thing about giants is:
They can be expensive, but they cannot become more expensive forever on imagination alone.$NVDA #英伟达市值重返5.4万亿美元