Nvidia Makes History:
Nvidia has made history by becoming the first public company to reach a market capitalisation of \$4 trillion. This significant milestone was achieved on July 9, 2025, when Nvidia’s shares surged by 2.5%, reaching an all-time high of \$164. The rise in its stock price is driven by the soaring demand for artificial intelligence (AI) technologies.
Nvidia’s remarkable rise began in June 2023 when it first crossed the \$1 trillion mark. In just over a year, the company has quadrupled its valuation, surpassing tech giants like Apple and Microsoft, both of which took much longer to reach similar valuations. This AI-fueled rally has made Nvidia the most valuable US company, with a market cap of \$4 trillion.
Global Market Impact
Nvidia’s market value now surpasses the combined worth of the Canadian and Mexican stock markets. It is also larger than the total market capitalisation of all publicly listed companies in the UK. This makes Nvidia not just a leader in the tech industry, but a major global player in the financial market.
Stock Performance and Investor Sentiment
Despite its explosive growth, Nvidia’s stock is trading at a forward price-to-earnings (P/E) ratio of 32, which is below its three-year average of 37. This suggests that investors still see potential in Nvidia’s shares, even after such a significant rise. The company’s resilience is evident, as it has surged 74% from its lows in April 2025, which were triggered by market jitters and geopolitical tensions.
Strong Financials and Future Forecast
In the first quarter of 2025, Nvidia reported a revenue of \$44.1 billion, marking a 69% increase year-on-year. It also reported a profit of 81 cents per share. Looking ahead, Nvidia has forecasted second-quarter revenue of \$45 billion, plus or minus 2%. The company is scheduled to report its second-quarter results on August 27, 2025.
Nvidia’s groundbreaking achievement reflects the immense growth potential of AI and its dominance in the semiconductor industry. As the company continues to expand, it is setting new benchmarks for technology companies worldwide.
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