Nvidia reached a historic point in its history on Thursday, July 3, by achieving a market value of $3.92 trillion and becoming the most valuable company in history, surpassing Apple’s previous record of $3.915 trillion set in 2024.
The chipmaker’s shares climbed 2.4 per cent to $160.98 in morning trading, driven by Wall Street’s unrelenting optimism about artificial intelligence (AI).
Nvidia’s meteoric rise has been boosted by soaring demand for its high-end AI chips, which have become critical for training advanced AI models. The company’s market capitalisation now exceeds the combined value of the Canadian and Mexican stock markets and surpasses the total value of all publicly listed companies in the United Kingdom, according to LSEG data.
Investment in Nvidia stock considered most valuable
“When the first company crossed a trillion dollars, it was amazing. And now you’re talking four trillion, which is just incredible,” said Joe Saluzzi, co-manager of trading at Themis Trading. “It tells you that there’s this huge rush with AI spending, and everybody’s chasing it right now.”
Nvidia, which was co-founded in 1993 by CEO Jensen Huang, has transformed from a niche player in video game graphics to the biggest player in the AI industry. Its stock has rocketed nearly eightfold since 2021, when its market value was $500 billion. The company now holds a 7.4 per cent weight in the S&P 500 index, undeniably claiming its dominance.
The rally follows a turbulent first half of the year, when concerns over President Donald Trump’s global tariff announcements and a trade dispute with Beijing weighed heavily on the markets. A selloff in January, in reaction to Chinese startup DeepSeek’s cut-price AI model outperforming Western competitors, raised concerns of reduced spending on high-end processors. However, Nvidia’s stock has just gone from strength to strength, rising 68 per cent from its April 4 dip, strengthened by expectations of softening trade policies.
Tech companies all using Nvidia chips making it most valuable company
Nvidia’s valuation is supported by strong earnings growth, trading at 32 times analysts’ expected earnings for the next 12 months. The company’s chips power AI data centres for tech giants like Microsoft, Amazon, Meta Platforms, Alphabet (Google), and Tesla, all racing against each other to dominate AI technology.
Microsoft, with a $3.7 trillion market cap, now is listed as the second-most valuable company in the world, while Apple which is valued at $3.19 trillion, is in third place. Nvidia’s rise also reveals a change in the semiconductor industry, as it has replaced floundering Intel in the Dow Jones Industrial Average in November 2024.
