Nvidia Corporation (NVDA) Stock: Nears $4 Trillion Mark, Becomes World’s Most Valuable Company as AI Surge Drives Historic Rally

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TLDR

  • Nvidia hits $3.92 trillion market value during trading, closing at $3.92 trillion, just below Apple’s all-time record

  • AI chip demand drives Nvidia’s rapid growth, with high-end processors used in leading AI data centers

  • The stock has rebounded over 68% since April’s tariff dip; now up 18.67% year-to-date

  • Nvidia’s valuation exceeds the combined market cap of all listed companies in the UK

  • Analysts see room for growth, though some warn of AI hype risks and global competition

Nvidia Corporation (NASDAQ: NVDA) closed at $159.34 on July 3, rising 1.33%, after briefly touching a record valuation of $3.92 trillion during a holiday-shortened trading session.

NVIDIA Corporation (NVDA)

This surge positions Nvidia at an all-time high and makes it one of the most valuable companies in history. As investor interest in AI infrastructure continues to explode, Nvidia’s dominance in chip technology remains a key driver.

AI Boom Fuels Market Cap Explosion

Nvidia’s recent rally is powered by relentless demand for its cutting-edge AI chips. These processors are central to training the largest and most advanced AI models used in data centers by companies like Microsoft, Alphabet, Meta, and Amazon. This demand has propelled Nvidia’s market value from $500 billion in 2021 to nearly $4 trillion today.

On Thursday, Nvidia briefly surpassed Apple’s record closing valuation of $3.915 trillion set in December 2024. Although the stock later dipped slightly to close with a $3.89 trillion cap, it remains ahead of Microsoft’s $3.7 trillion and Apple’s current $3.19 trillion.



Strong Performance Despite Tariff Concerns

Nvidia’s stock has rebounded sharply since early April when global trade tensions led by President Trump briefly rattled markets. Shares are now up more than 68% from that low and have gained 18.67% year-to-date, well above the S&P 500’s 6.76% gain.

Investors are optimistic about continued government and enterprise investment in AI. Analyst Dan Ives of Wedbush believes Nvidia could hit $4 trillion this summer and $5 trillion within 18 months, driven by an estimated $2 trillion in global AI spending over the next three years.

Skepticism Lingers Despite Record Growth

Not all market watchers are convinced the AI boom is sustainable. Jim Chanos, a noted short seller, compared the current surge to the dot-com bubble, warning that capital expenditures could be quickly slashed if confidence fades. Bokeh Capital’s Kim Forrest echoed caution, questioning whether large language models will live up to investor expectations.

Even so, Nvidia continues to outperform. It now comprises 7% of the S&P 500 index, and along with Apple, Microsoft, Alphabet, and Amazon, represents 28% of the benchmark, highlighting how concentrated tech influence has become in equity markets.

Massive Global Market Lead

Nvidia’s $3.92 trillion valuation exceeds the combined market cap of all publicly traded firms in Canada and Mexico. It even surpasses that of the entire United Kingdom’s stock market. The company’s transformation from a gaming chipmaker to an AI infrastructure titan has solidified its place at the heart of today’s technology revolution.