Is Nvidia on the verge of becoming the world’s most valuable company?
Nvidia soared to an astonishing market valuation of $3.92 trillion on Thursday, briefly overtaking Apple’s record and positioning itself to potentially claim the title of the most valuable company in history.
Shares of the California-based chip giant climbed as much as 2.4%, hitting $160.98 in early trading before settling up 1.5% at $159.60. Even after a slight pullback, Nvidia’s market cap stayed just shy of Apple’s all-time high of $3.915 trillion, set in December 2024.
AI Demand Fuels Historic Growth
This extraordinary surge is driven by explosive demand for Nvidia’s latest AI processors, which have become essential for training massive artificial intelligence models. With major tech companies including Microsoft, Amazon, Meta, Alphabet, and Tesla racing to build AI infrastructure, Nvidia’s chips are now at the heart of this new technology boom.
“When the first company hit a trillion dollars, it was astonishing. Now we’re talking about valuations approaching four trillion, which is just incredible,” said Joe Saluzzi, co-manager at Themis Trading. “It shows the scale of this AI spending boom and how everyone is piling in.”
Nvidia’s transformation is remarkable. Once mainly known for graphics chips powering video games, the company has evolved into a bellwether for the AI revolution. Its market value has grown nearly eightfold in four years, from $500 billion in 2021 to almost $4 trillion today surpassing the combined worth of the Canadian and Mexican stock markets.
A New Era on Wall Street
According to LSEG data, Nvidia now trades at around 32 times expected earnings over the next 12 months, which is actually below its five-year average of 41. This reflects how rapidly analysts have boosted profit forecasts to match its growth.
Nvidia’s stock has rebounded 68% from April lows, when worries about tariffs and trade tensions rattled markets. Optimism returned as investors bet that fresh trade deals would help offset tariffs announced by President Donald Trump.
The company’s soaring valuation has made it a heavyweight in the S&P 500 index, accounting for 7% of the benchmark. Together with Microsoft, Apple, Amazon, and Alphabet, Nvidia now represents over a quarter of the entire index.
While enthusiasm runs high, some caution that expectations may be getting ahead of reality.
“I strongly believe that AI is a hugely productive technology, but I’m fairly sure that the current delivery of large language and reasoning models won’t fully live up to the hype,” warned Kim Forrest, chief investment officer at Bokeh Capital Partners.”
Founded in 1993 by CEO Jensen Huang, Nvidia has evolved from a niche graphics chip maker into the defining company of the AI era, reshaping both Wall Street and the future of technology.
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