Nvidia’s AI-fuelled rally has smashed another record: the chipmaker’s market value briefly topped US $4 trillion in Wednesday trading, making it the first publicly listed company ever to cross the milestone. Shares climbed as much as 2.4 % to US $164.00 before paring gains.
How big is US $4 trillion – let’s put in perspective
- Bigger than nations. Nvidia is now worth more than the total market capitalisation of all companies listed in the United Kingdom or the combined bourses of Canada and Mexico.
- 7 % of the S&P 500. One stock now accounts for roughly seven cents of every dollar in the benchmark U.S. index.
- A new high‑water mark. Apple’s peak closing value was US $3.915 trillion on 26 December 2024; Nvidia has leapt past that by more than US $80 billion.
What’s driving this surge
Catalyst | Detail |
---|---|
AI gold‑rush orders | Cloud giants Microsoft, Amazon, Alphabet and Meta are racing to secure Nvidia’s Blackwell & Hopper GPUs for datacentres. |
Consistent earnings beats | Q1 FY25 revenue jumped 78 % YoY—well above Wall Street estimates. |
Stock split & liquidity | Last year’s 10‑for‑1 split lowered the nominal share price, broadening retail participation. |
Valuation comfort | Despite the run‑up, Nvidia trades at ~32× forward earnings, below its five‑year average of 41×. |
The Top 3 as of Today
Rank | Company | Market cap* | 2025 YTD change |
---|---|---|---|
1 | Nvidia | US $4.00 T | +81 % |
2 | Microsoft | US $3.70 T | +14 % |
3 | Apple | US $3.19 T | – 2 % |
Intraday values as of 14:45 UTC, 9 July 2025 . See full list here
Analyst takeaways
“Crossing US $4 trillion is less about exuberance than about capacity scarcity in AI hardware,” notes Joe Saluzzi of Themis Trading.
- Upside scenarios: Loop Capital sees room to US $250 per share as new Blackwell shipments ramp.
- Risks: Concentration in one supplier, cyclical capex, and the chance AI demand decelerates once early datacentre build‑outs plateau.
What’s next?
- Q2 earnings arrive 20 August; consensus expects a fresh sales record near US $42 billion.
- Regulatory eyes: U.S. lawmakers are reviewing export licences after China’s DeepSeek released a lower‑cost AI model.
- Broader impact: Pension and index funds, heavily weighted to Nvidia, will feel outsized volatility if the stock whipsaws.
Developing story—TechBooky will update as more market data comes in.
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