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Monday, Jul 14, 2025
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Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
AI chipmaker reaches historic valuation, surpassing Apple and Microsoft as global markets rally
Nvidia closed Thursday with a market capitalisation of just over four trillion dollars, becoming the first publicly traded company in history to reach that milestone .
The stock closed at approximately one hundred sixty‑four dollars per share, following an intraday high above that figure .
The surge in Nvidia’s stock price reflects mounting investor confidence in its dominance of the artificial intelligence sector.
The company’s share price has increased roughly eightfold since late two thousand twenty‑two, shortly after the release of ChatGPT .
Analysts attribute the rise to Nvidia's near monopoly in supplying high‑performance chips for data centres and AI workloads, bolstered by major contracts in markets such as the Middle East .
This week’s milestone was part of a steady climb: Nvidia attained a two‑trillion‑dollar valuation in early two thousand twenty‑four and reached three trillion by mid‑year .
Despite ongoing restrictions on chip exports to China, the firm reported substantial gains, including a seventy‑percent year‑on‑year revenue increase in its latest quarter .
Nvidia’s market cap now exceeds that of Apple and Microsoft, shifting the rankings of the world’s most valuable companies .
Its weighting on the S&P 500 has risen above seven per cent, making it the index's largest single component .
The valuation milestone coincided with broader equity gains: Nvidia's rise contributed to record closing levels for the S&P 500 and Nasdaq .
Under CEO Jensen Huang, Nvidia has spent heavily on AI infrastructure, including new data centres and software development, reinforcing its position at the forefront of AI innovation .
Projections from investment analysts indicate revenues could approach two hundred billion dollars this year, with net income projected at around one hundred billion .
Meanwhile, CEO Huang reportedly met with the U.S. president at the White House on the day of the milestone, drawing attention to the geopolitical implications of Nvidia’s growth and its role in the AI chip race .
The rapid ascent of Nvidia has drawn attention across global markets, with comparisons noting that a further five‑percent increase in its share price would put its valuation ahead of India’s entire gross domestic product .
The stock closed at approximately one hundred sixty‑four dollars per share, following an intraday high above that figure .
The surge in Nvidia’s stock price reflects mounting investor confidence in its dominance of the artificial intelligence sector.
The company’s share price has increased roughly eightfold since late two thousand twenty‑two, shortly after the release of ChatGPT .
Analysts attribute the rise to Nvidia's near monopoly in supplying high‑performance chips for data centres and AI workloads, bolstered by major contracts in markets such as the Middle East .
This week’s milestone was part of a steady climb: Nvidia attained a two‑trillion‑dollar valuation in early two thousand twenty‑four and reached three trillion by mid‑year .
Despite ongoing restrictions on chip exports to China, the firm reported substantial gains, including a seventy‑percent year‑on‑year revenue increase in its latest quarter .
Nvidia’s market cap now exceeds that of Apple and Microsoft, shifting the rankings of the world’s most valuable companies .
Its weighting on the S&P 500 has risen above seven per cent, making it the index's largest single component .
The valuation milestone coincided with broader equity gains: Nvidia's rise contributed to record closing levels for the S&P 500 and Nasdaq .
Under CEO Jensen Huang, Nvidia has spent heavily on AI infrastructure, including new data centres and software development, reinforcing its position at the forefront of AI innovation .
Projections from investment analysts indicate revenues could approach two hundred billion dollars this year, with net income projected at around one hundred billion .
Meanwhile, CEO Huang reportedly met with the U.S. president at the White House on the day of the milestone, drawing attention to the geopolitical implications of Nvidia’s growth and its role in the AI chip race .
The rapid ascent of Nvidia has drawn attention across global markets, with comparisons noting that a further five‑percent increase in its share price would put its valuation ahead of India’s entire gross domestic product .
