The $4 Trillion Club: Why Apple, Microsoft, Nvidia, and Google Are Just Getting Started

Today’s Letter is brought to you by The Bitcoin Dolce Visa ! You can now access Italy’s Investor Visa with a €250K equity investment into Bitizenship Italia, a Milan-based Bitcoin startup. Visa approval arrives first, investment happens only after authorization. The company operates with a Bitcoin-aligned treasury, non-custodial L2 staking, and clear redemption windows every 24 months. To date, Bitizenship has facilitated €25M+ in Bitcoin-aligned residency investments. A compliant, Bitcoin-native pathway into one of Europe’s strongest economies. Private placements now open. 1 Claim your free strategy call today! To investors, Yesterday Google became the fourth company in history to hit a $4 trillion market cap. They join Nvidia, Apple, and Microsoft in this rare club of companies. Nvidia became the first company ever to reach $4 trillion in July of this year, which was quickly followed by Microsoft crossing the same threshold in intraday trading on July 31st. The only problem is that Microsoft closed below $4 trillion that day and the company didn’t surpass the milestone again until last month, which is when they finally closed the trading day above the magic number of $4 trillion. Apple followed closely behind and crossed the milestone in late October. This means we had never seen a single company reach a $4 trillion market cap, but all of a sudden we have four companies that pulled off the accomplishment in the last five months. Welcome to the new world of business and finance. The winners are worth more than you thought and the losers become irrelevant faster than you thought possible. So we must ask ourselves, what is driving the meteoric growth for these large tech companies? There are a few drivers of valuation. First, these companies are producing insane amounts of revenue. Apple revenue: $416 billion (+6%) Google revenue: $385 billion +13%) Nvidia revenue: $130 billion (+114%) Microsoft revenue: $281 billion (+15%) These numbers are ridiculous. Multi-trillion dollar companies growing double-digit percentages year-over-year and Nvidia more than doubling over the last 12 months. But this is not only a story of top line revenue growth. These four companies are producing real free cash flow too. Apple FCF: $98 billion Google FCF: $73 billion Nvidia FCF: $60 billion Microsoft FCF: $78 billion Investors look at a lot of data points to measure a company’s value, but nothing is more important than free cash flow and these companies are delivering on that metric. This free cash flow is being used to do three big things: buyback shares, pay dividends, and make substantial CapEx investments in AI infrastructure. The first two uses of free cash flow are self-explanatory, but it is this third one that has everyone’s attention. Google is projected to spend around $90 billion on CapEx this year and a significant portion will go to AI infrastructure for their cloud, search, and YouTube businesses. Microsoft is planning to spend around $80 billion with a big focus on AI-data centers and cloud infrastructure for training models, along with deploying AI and cloud applications. Apple is taking a different approach. They plan to only spend $12.7 billion on CapEx, but majority of it is focused on first-party AI data center infrastructure and proprietary silicon. A big reason why Apple spends so much less on CapEx is their decision to use a hybrid model with third-party cloud providers for large compute demands. And finally, Nvidia. They don’t spend CapEx on data centers or other traditional AI infrastructure. Instead, Nvidia is one of the big winners from all the CapEx spend by these large companies, because analysts believe Nvidia will capture 25-35% of the total $405 billion in AI-related infrastructure spending globally. So this brings us back to the fact that four different companies have become $4 trillion companies in the last five months. That is only possible because of the large, addressable market of artificial intelligence. If you evaluate these companies through the rearview mirror of history, you may be worried about their future prospects. You will claim things are expensive or you will question the future durability of their demand. But if you evaluate these companies as the winners of the largest addressable market of our lifetime, then you realize it is much more likely that each of these four companies are undervalued relative to their future financial performance. Take humanoid robots as a single example. Wall Street banks see the industry growing into a multi-trillion dollar juggernaut over the next 25 years, including a compound annual growth rate of 40-100% for the foreseeable future. Companies are going to have to innovate on hardware and software to make those projections become a reality. This is noteworthy because humanoid robots are a net new industry. It didn’t previously exist, so that will be trillions of dollars in economic value up for grabs. And who do you think is going to capture some of it? The largest, fastest-growing, most innovative companies in the world. There will be plenty of startups that create brand new businesses, but one thing we have learned from the AI boom is that incumbents are very well positioned to benefit from this innovation period. And then there is the new US government support for the industry, which in turn is support for these large cap tech companies. AI czar David Sacks tweeted yesterday “According to today’s WSJ, AI-related investment accounts for half of GDP growth. A reversal would risk recession. We can’t afford to go backwards.” And then Energy Secretary Chris Wright said in a television interview yesterday that the administration’s new Genesis Mission is “an all-in national effort to take the power of AI and pair it with the 40,000 outstanding scientists and engineers at our national labs.” So you have a massive addressable market, tons of free cash flow, a government-driven tailwind, and monetary policy that is easing. What do you think is going to happen? You think stocks are going to enter a decade-long recession or bear market? Give me a break. The era of $4 trillion companies is here. Eventually we will have $10 trillion companies. No one is going to stop the inevitable. Have a great day. I’ll talk to everyone tomorrow. - Anthony Pompliano Founder & CEO, Professional Capital Management Matthew Siegel on Crypto Equities and Whether It Is Time To Buy Bitcoin Now Matthew Siegel is the Portfolio Manager of the VanEck Onchain Economy ETF ($NODE), one of the most forward-thinking institutional products in the crypto ecosystem. In this episode, we break down how major institutions are evaluating Bitcoin — from market structure and sentiment to what’s driving recent price action. Matthew shares the three indicators he uses to gauge Bitcoin’s direction, how he thinks about buying during volatility, and what he’s watching in crypto-linked public equities. We also dig into the broader digital-asset landscape — from smart-contract platforms to stablecoins and where he sees the strongest long-term opportunities. Enjoy! Podcast Sponsor Figure - Need liquidity without selling your crypto? Figure’s Crypto-Backed Loans allow you to borrow against your BTC, ETH, or SOL with 12-month terms and lowest rates in the industry at 8.91%. Access instant cash or buy more Bitcoin without triggering a tax event. https://figuremarkets.co/pomp Bitizenship – Get Italian Residency with €250k investment in Bitcoin Startup Italy , maintaining Bitcoin exposure. Book a free strategy call at bitizenship.com/pomp . BitcoinIRA - Buy, sell, and swap 75+ cryptocurrencies in your retirement account. Pay less taxes. Earn up to $1,000 in rewards . Arch Public - Arch Public’s cutting-edge algorithm tools ignite profits, harnessing razor-sharp data analytics to nail perfect entries, exits, and risk management. Turn volatility into opportunity and do it hands free with Arch Public. (Oh, and yes, try us out for FREE too!) Defi Development Corp - DeFi Development Corp. (Nasdaq: DFDV) is building the first Solana-focused public treasury, giving investors exponential exposure to Solana’s growth. easyBitcoin - Stack sats with easyBitcoin.app—earn 1% extra on buys, 2% annual rewards and 4.5% APY on USD. Download it at easybitcoin.app today. Bitwise Asset Management - Crypto specialist asset manager with more than $10 billion client assets and more than 30 crypto solutions across ETFs, index funds, alpha strategies, staking, and more. Learn more at bitwiseinvestments.com Xapo Bank : Fully licensed private bank and virtual assets services provider that integrates traditional finance and Bitcoin. Earn up to 3.6% in BTC over USD Savings. Spend globally with a debit card that gives up to 1% cashback in BTC. The Pomp Audience Exclusive: Receive $150 discount when they join with this link . Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit Simple Mining here . Bitlayer - Bitlayer is powering Bitcoin beyond just a store of value, making Bitcoin DeFi a reality while staying true to its core principles of security and decentralization. Learn more about Bitlayer at https://x.com/BitlayerLabs 🚨READER NOTE: If you want to sponsor The Pomp Letter, you can fill out this form and someone from our team will get in touch with you. You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.