Nvidia Hits $4 Trillion Market Capitalization
On July 9, 2025, Nvidia achieved a remarkable milestone by becoming the first public company globally to reach a market capitalization of $4 trillion. This milestone reinforces its status as a leading stock on Wall Street.
The company’s shares climbed as much as 2.5%, reaching a record high of $164, largely driven by a growing demand for artificial intelligence technologies. Nvidia’s impressive market value reflects Wall Street’s faith in the rapid expansion of AI, with its advanced chips serving as a crucial element in this evolution.
Interestingly, the stock’s surge follows a somewhat uncertain start to the year, triggered in part by the introduction of a competing AI model from Chinese company DeepSeek, which had initially shaken investor confidence in stocks associated with the sector.
Art Hogan, B Riley Wealth’s chief market strategist, pointed out that Nvidia has evolved from a gaming chipmaker to now being a prominent player in AI computing power. “It is continuing to move forward and be a clear early winner of artificial intelligence,” he added.
Nvidia first hit a $1 trillion market value in June 2023 and has since tripled that figure in just about a year, outpacing both Apple and Microsoft— the only other U.S. companies valued over $3 trillion.
Currently, Microsoft holds a market capitalization of $3.75 trillion, with shares recently up by 1.3% at $503. Nvidia, meanwhile, has rebounded approximately 74% since its lows in April, a period marked by upheaval in global markets due to political tensions.
Recent optimism regarding trade agreements with the U.S. has buoyed stock prices overall, helping the S&P 500 index reach an all-time high. Nvidia, which comprises 7.3% of the S&P 500, has the highest weight on the index, while tech giants Apple and Microsoft represent around 7% and 6% respectively.
According to LSEG data, Nvidia’s market value surpasses that of both the Canadian and Mexican stock markets combined, and is greater than the total value of publicly listed companies in the UK.
The stock is currently trading at a forward price-to-earnings ratio of 32 for the next 12 months, which is below its three-year average of 37. In terms of financial performance, Nvidia reported $44.1 billion in revenue for the first quarter, reflecting a 69% increase from the previous year, along with earnings of 81 cents per share.
Looking ahead, for the second quarter, the company projects revenue of around $45 billion, with an expected report on its second-quarter results coming up on August 27.
With these gains accounted for, Nvidia’s stock has risen over 22% this year, in contrast to nearly a 15% increase in the Philadelphia Semiconductor Index.
