Nvidia’s market capitalization surpassed $4 trillion for the first time on Thursday, reinforcing its status as a leading contender in the surge towards artificial intelligence dominance on Wall Street.
The company’s shares increased by 0.75 percent, closing at $164.10, which elevated its total market value to $4.004 trillion, further distancing it from tech giants Apple and Microsoft amid rising demand for AI technologies.
Nvidia’s market value had briefly exceeded the $4 trillion mark earlier on Wednesday but closed the session at around $3.97 trillion. This valuation exceeds the aggregate worth of all publicly traded companies in the United Kingdom.
The company’s advanced processors are pivotal in the competition among major players including Microsoft, Amazon, Alphabet, and Meta Platforms as they strive to establish AI data centers and secure a foothold in this emergent sector.
However, Nvidia faces challenges stemming from ongoing trade tensions between the United States and China, including constraints on the export of its highest-performing chips to the Asian market.
“Trade tensions and tariffs present risks, as does competitive pressure. An increase in AI adoption could redirect some demand towards more cost-effective alternatives,” noted Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, in a client communication.
The company first reached a $1 trillion market value in June 2023 and has since tripled that amount within a year, accomplishing this milestone at a faster pace than Apple and Microsoft, the only other American companies valued above $3 trillion.
Microsoft remains the second most valuable company in the U.S., with a market capitalization of $3.73 trillion, though its shares saw a decline of 0.4 percent on Thursday.
Apple’s stock has experienced a 15 percent drop so far in 2025, resulting in a market value of $3.17 trillion as concerns grow regarding the company’s slower integration of AI into its products and services.
Despite its rapid ascent, Nvidia’s stock is currently valued at approximately 33 times projected earnings, which is below its five-year average of 41, according to LSEG data.
© Thomson Reuters 2025
