Earlier this month, Nvidia briefly reached a market capitalization of $4 trillion, becoming the first company in history to achieve this milestone. This surge was driven by growing demand for its AI chips. On July 9, shares hit a record high of $164.42 before closing with a market value of $3.97 trillion. So far in 2025, the stock has risen over 22 percent and has rebounded 74 percent from its April low.
Nvidia’s advanced chips are the backbone of much of the AI infrastructure used by leading technology companies, cementing its central role in the ongoing AI revolution.
Robert Pavlik, a senior portfolio manager at Dakota Wealth, noted that the trend shows how companies are increasingly directing their investments toward AI, which he described as the future of technology.
Nvidia now represents 7.3 percent of the S&P 500, a larger share than either Apple or Microsoft. The company’s value exceeds that of the entire UK stock market and surpasses the combined markets of Canada and Mexico.
Even with its substantial market valuation, Nvidia trades at a forward price-to-earnings ratio of 32, which is below its three-year average of 37.
In the first quarter, Nvidia reported revenue of $44.1 billion, marking a 69 percent increase compared to the same period last year. The company anticipates around $45 billion in revenue for the second quarter, with official earnings set to be announced on August 27.
Although competitors like AMD are attempting to gain ground, and major clients such as Microsoft and Amazon are reassessing their AI investments, Nvidia continues to lead the AI hardware market.
