Nvidia’s market capitalization surpassed $4 trillion for the first time during Thursday’s trading session, reinforcing its central role in the competitive landscape of artificial intelligence technology.
The company’s shares rose by 0.75 percent, closing at $164.10 and establishing a market value of $4.004 trillion. This significant achievement further distinguishes Nvidia from major competitors Apple and Microsoft, which are also vying for dominance in AI technology amidst increasing demand.
While Nvidia’s market value briefly exceeded $4 trillion on Wednesday, it ultimately closed the day at around $3.97 trillion. Notably, Nvidia’s valuation now exceeds the combined market capitalization of all publicly traded companies in the United Kingdom.
The firm’s advanced processors are integral to a competitive environment involving tech giants like Microsoft, Amazon, Alphabet, and Meta Platforms, all of whom are striving to establish AI data centers and gain an edge in this burgeoning sector.
Nvidia also faces challenges related to the ongoing trade tensions between the United States and China, particularly regarding export restrictions on its most advanced chips.
“Trade tensions and tariffs present a risk, as does the potential for increased competition. A broader adoption of AI could drive demand towards more cost-effective alternatives,” noted Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, in a recent client report.
The company reached a market value of $1 trillion for the first time in June 2023 and has since seen its valuation triple in just about a year, outpacing Apple and Microsoft, the only other U.S. companies valued over $3 trillion.
Microsoft, which is the second most valuable company in the United States, has a market capitalization of $3.73 trillion. Its shares experienced a decline of 0.4 percent on Thursday.
Apple’s stock has experienced a 15 percent drop since the beginning of 2025, resulting in a market valuation of $3.17 trillion. This decline has raised concerns among investors regarding the company’s perceived slow adoption of AI technology into its product offerings.
Despite its rapid stock price increase, Nvidia’s shares are currently priced at approximately 33 times projected earnings, which is below its five-year average of 41, according to LSEG data.
© Thomson Reuters 2025
