A Milestone in the History of Capitalism: Nvidia Surpasses $4 Trillion in Value

Shares of the leading chip designer rose 2.5 percent to a record high of $164 , Reuters reported, benefiting from the ongoing surge in demand for artificial intelligence technologies.

The rapid development of artificial intelligence is the reason for Nvidia's popularity

Nvidia's surge in market value underscores Wall Street's confidence in AI's rapid growth, with the company's high-performance chips underpinning this technological advance.

The latest rally in stocks follows a sluggish start to the year, when the emergence of a Chinese discount AI model developed by DeepSeek shook confidence in stocks linked to the sector.

“Nvidia started as a gaming chip maker, then a cryptocurrency mining chip maker, and now an artificial intelligence chip maker,” said Art Hogan, chief market strategist at B. Riley Wealth.

Nvidia tripled its value in a year

Nvidia first reached a market value of $1 trillion in June 2023 and tripled it in about a year , faster than Apple and Microsoft, the only other U.S. companies with a market value of more than $3 trillion.

Microsoft is the second-largest U.S. company with a market capitalization of $3.75 trillion. Its shares recently rose 1.3% to $503.

Nvidia has rebounded about 74% from its April lows, when global markets were rocked by U.S. President Donald Trump's tariff salvo.

Optimism over trade deals with the US has recently boosted stock prices, with the S&P 500 reaching an all-time high .

Nvidia has a 7.3% share of the S&P 500 , the largest share in the index. Fellow tech giants Apple and Microsoft account for about 7% and 6%, respectively.

The company is worth more than the combined value of the Canadian and Mexican stock markets , according to LSEG data, and exceeds the total value of all publicly listed companies in the UK.

Its shares are trading at a 12-month price-to-earnings ratio of 32, below the three-year average of 37, according to data compiled by LSEG.

For the first quarter, the company reported total revenue of $44.1 billion, a 69% increase from a year ago, and earnings of 81 cents per share. For the second quarter, Nvidia expects revenue of $45 billion (plus or minus 2%). Second-quarter results will be released on August 27.