Nvidia briefly reached a market capitalization of $4 trillion on Wednesday, making it the first company in the world to reach the milestone and solidifying its position as one of Wall Street's most-favored stocks.

Nvidia stock has regained its momentum in recent months and should be able to sustain it in the long run as well. Nvidia's market share and the potential data center revenue growth that it could clock should help double its market cap in the next three years.

Even at record highs, Nvidia’s stock may not be as expensive as it is touted to be. Some valuation metrics suggest room for upside