Nvidia reached a historic point in history by achieving a market value of $3.92 trillion on Thursday, July 3rd, surpassing Apple’s previous record of $3.915 trillion in 2024.
The chipmaker’s stock rose 2.4% to $160.98 in morning trading, due to Wall Street’s unrelenting optimism about artificial intelligence (AI).
Nvidia’s meteor rise is driven by a surge in demand for high-end AI chips, which are important for training advanced AI models. According to LSEG data, the company’s market capitalization currently exceeds the total value of the Canadian and Mexican stock markets, exceeding the total value of all publicly listed companies in the UK.
Investing in Nvidia stocks is considered the most valuable
“When the first company went over $1 trillion, that was amazing. And now you’re speaking 4 trillion words, which is incredible,” said Joe Saluzzi, co-manager of trading at Themis Trading. “There’s this huge rush to spending AI and everyone is following it right now.”
Co-founded in 1993 by CEO Jensen Huang, Nvidia has transformed from a niche player in video game graphics to the biggest player in the AI industry. The stock has almost eight times its shares since 2021, when its market value was $500 billion. The company currently holds 7.4% weight on the S&P 500 index, claiming it is denying its advantage.
The rally follows the first half of the year’s turbulence, when concerns over President Donald Trump’s global tariff announcement and trade disputes with Beijing weighed heavily on the market. January’s selling, which surpasses Western competitors in response to Chinese startup Deepseek’s cut-price AI model, has sparked concerns about cutting spending on high-end processors. However, Nvidia’s stock has been strengthened by expectations to ease trade policy, up 68% from the April 4 DIP.
All high-tech companies use NVIDIA chips.
Nvidia’s valuation is supported by massive revenue growth and is trading at 32x the expected revenue of analysts over the next 12 months. The company’s chips are all competing with Power AI Data Centers for high-tech giants like Microsoft, Amazon, Meta Platforms, Alphabet (Google) and Tesla to control AI technology.
With a market capitalization of $3.7 trillion, Microsoft is currently listed as the second most valuable company in the world, while Apple, which is valued at $3.19 trillion, is third. Nvidia’s rise also reveals changes in the semiconductor industry as it replaced the Dow Jones Industrial Average Flounder Intel in November 2024.
