Nvidia stock hits record high, first to reach $4 trillion
Nvidia becomes first company to reach $4 trillion market cap
During trading on July 9, Nvidia’s stock rose over 2% to $164, hitting a new all-time high and making it the first company in history to surpass a $4 trillion market capitalization.
While Apple and Microsoft were also nearing this milestone, Nvidia outpaced them by capitalizing on the surging demand for chips powering generative AI models.
“The company started with gaming chips, then moved into crypto mining chips, and now dominates in chips for AI computing power,” said Art Hogan, chief market strategist at B. Riley Wealth.
Since the launch of ChatGPT in late 2022, Nvidia has benefited significantly from booming demand for AI hardware and processors. It has firmly established itself as the undisputed leader in GPU development for large language models.
As noted by Reuters, Nvidia first reached a $1 trillion valuation in June 2023 and managed to triple it in just about a year — a testament to Wall Street’s confidence in the rapid expansion of AI technologies.
NVIDIA stock price dynamics for 2 months. Source: TradingView
Nvidia shares are up more than 22% year-to-date and have surged 74% since the April low.
Rock-solid market dominance
This surge comes after a slow start to the year, when Chinese AI competitor DeepSeek undermined confidence in AI-related stocks. Despite headwinds such as U.S. export restrictions on high-performance chips to China and CEO Jensen Huang’s own stock sales, Nvidia stock quickly rebounded.
The company reported $44.1 billion in revenue in Q1, up 69% year-over-year, with earnings of $0.81 per share. For Q2, Nvidia expects revenue of $45 billion, ±2%. Earnings are scheduled for release on August 27.
Currently, Nvidia makes up 7.3% of the S&P 500 index — the largest weighting of any company. By comparison, Apple and Microsoft represent about 7% and 6%, respectively.
According to LSEG, Nvidia’s valuation exceeds the combined value of Canada’s and Mexico’s stock markets and is larger than the entire public equity market of the United Kingdom.
As we wrote, Nvidia stock rallies 1.3% as AI chip demand soars
