Predicted AI Companies to Significantly Increase in Value to $4 trillion by 2025, as Suggested by Certain Financial Experts on Wall Street
In the third year of the AI revolution, some Wall Street analysts envision a historic milestone for tech giants Nvidia and Microsoft, with expectations of reaching $4 trillion market values.
Ivan Feinseth at Tigress Financial upped his Nvidia target price to an ambitious $220 per share, implying an 83% surge and a whopping $5.3 trillion market cap. Similarly, Joel Fishbein at Truist Financial reiterated Microsoft's target price of $600, which would likewise inflate the Redmond-based tech giant's market value to $4.4 trillion — a 44% upswing.
The momentum stems from reports that upstart Chinese AI firm, DeepSeek, managed to train an advanced AI model with less investment than their U.S. counterparts, indicating analysts' faith in the continuation of AI infrastructure investments.
Analyst Dan Ives at Wedbush Securities shares this perspective, predicting Nvidia and Microsoft to surpass $4 trillion market values by 2025 as the AI sector continues its relentless growth. Ives isn't entirely convinced by the story of DeepSeek achieving such impressive results with little Nvidia hardware, however.
Now let's delve a bit deeper into these two tech titans.
Nvidia: 83% Implied Upside
Nvidia holds the dominant position in data center graphics processing units (GPUs). These chips are synonymous with accelerating computationally intense workloads such as AI. Already enjoying a massive tailwind, data center GPU sales are projected to skyrocket at a 29% annual rate through 2030, as per research firm, Grand View.
The company reported outstanding financial results in Q3 of 2025, boasting a 94% revenue surge to $35 billion, primarily driven by the surge in data center segment sales. Earnings followed suit, jumping 103% to $0.81 per diluted share, marking their sixth consecutive quarter of triple-digit growth.
CEO Jensen Huang emphasized enormous opportunities in physical AI, or machine learning models capable of understanding, navigating, and interacting with the physical world, as revealed during his 2025 CES keynote. Nvidia offers a comprehensive full-stack computing solution, encompassing supercomputing infrastructure, software development tools, and embedded processors for self-driving vehicles and autonomous robots.
Analysts also anticipate Nvidia's adjusted earnings to soar 50% over the next four quarters. At a current valuation of 45 times adjusted earnings, the company's PEG ratio of less than 1 suggests a relatively reasonable price.
Additionally, Dan Ives at Wedbush Securities believes self-driving cars and autonomous robots represent a $1 trillion opportunity for Nvidia, alongside the $1 trillion prospect in accelerated computing and generative AI. Ives contends that the industry consensus estimates miss the mark by at least 30% in the next few years.
If Nvidia manages to continue meeting these lofty expectations, it could just as easily surpass or even exceed the $4 trillion market cap before 2025 concludes.
Microsoft: 44% Implied Upside
Microsoft harnesses two primary growth engines: enterprise software and cloud computing. As the globe's leading software company and second-largest cloud service provider, Microsoft leverages AI to create new revenue streams in both sectors. For instance, Microsoft 365 Copilot automates office software tasks, while Azure AI serves as a cloud platform for constructing AI applications.
Microsoft reported solid financial results in Q2 of 2025, exceeding both top and bottom-line estimates with a 12% revenue bump to $69.6 billion. Net income also grew 10% to $3.23 per diluted share.
CEO Satya Nadella highlighted AI products' $13 billion annual revenue run rate, which has grown exponentially by 175% compared to the prior year. This particularly rapid growth has no historical precedent within Microsoft's product lineup.
Although Microsoft provided lackluster Q3 guidance that fell below Wall Street's expectations, its stock still appears pricey. With an expected earnings growth of 10% over the next four quarters, shares currently trade at a lofty 33 times earnings.
However, Microsoft has surpassed earnings targets in every quarter over the previous two years — a streak that might well continue as customers ramp up AI investments. Morgan Stanley even views Microsoft as the front-runner in AI software, suggesting the company may reach a $4 trillion market cap before the year's end in 2025.
In light of the impressive growth potential in AI, analyst Dan Ives suggests investing in both Nvidia and Microsoft, predicting they will surpass $4 trillion market values by 2025 due to the sector's relentless growth. Investors are also drawn to these tech giants based on their strong financial performances, with Nvidia reporting a 94% revenue surge in Q3 of 2025 and Microsoft exceeding both revenue and earnings estimates in Q2 of the same year.
