admin In July, 2025, Nvidia briefly achieved a market capitalisation of $3.92 trillion, surpassing the previous record set by Apple at $3.915 trillion in December 2024. This milestone represents the highest valuation ever recorded by a publicly traded company. Nvidia’s share price rose over 2% during morning trading, peaking at $160.98 before stabilising near $159.60. This rally propelled Nvidia past Apple and placed it ahead of Microsoft, which now holds the second position with a market cap of approximately $3.7 trillion, while Apple now ranks third at roughly $3.19 trillion.
The surge highlights Wall Street’s strong confidence in artificial intelligence. Nvidia’s data‑center GPUs are foundational to the latest large‑scale AI models, driving extraordinary demand from tech giants including Microsoft, Amazon, Google’s Alphabet, Meta, and Tesla. Since 2021, Nvidia’s valuation has jumped nearly eightfold, rising from roughly $500 billion to nearly $4 trillion. Its market cap now exceeds the combined total of all publicly traded companies in Canada, Mexico, and even the United Kingdom.
AI Demand Fuels Stock Market Surge
Nvidia’s rise has been driven by accelerated investment in AI infrastructure. Major corporations are constructing advanced AI data centers, increasing need for high‑performance GPUs. This global trend has encouraged Nvidia to ramp up production of its latest chip architectures, including the Blackwell series. Internal projections suggest that Nvidia’s Q2 revenue may reach near $44.1 billion, with approximately $39.1 billion generated through data‑center sales.
Despite exponential share price gains, Nvidia’s price‑to‑earnings (P/E) ratio remains at a relatively moderate 32 times forward earnings, below its longer‑term average of around 41. Analysts interpret this as market confidence in sustained profitability fueled by AI demand, although some caution that investor exuberance could be outpacing realistic expectations.
With its current valuation contributing roughly 7 percent of the S&P 500, Nvidia is now a major influence on U.S. equity indices and retirement portfolios. Observers are now closely watching whether Nvidia or Microsoft will emerge as the first company to breach the $4 trillion threshold, though Nvidia appears poised to reach this level first.
The record-breaking valuation underlines AI’s central role in shaping market dynamics. Nvidia’s position as the backbone of modern AI infrastructure has propelled it into uncharted financial territory.
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