In a watershed moment for the tech industry, NVIDIA’s market capitalization surged past US$ 4 trillion, making it the first publicly traded company to reach this staggering valuation.
What the milestone means
– On July 9, 2025, NVIDIA’s shares briefly propelled its market value above the US$ 4 trillion mark during intraday trading.
– On the following trading day, it closed above US$ 4 trillion at about US$ 164.10 per share, solidifying the milestone.
– This achievement positions NVIDIA ahead of other tech giants such as Apple Inc. and Microsoft Corporation in terms of market valuation at that time.
Why the surge?
The rapid rise in NVIDIA’s valuation is deeply connected to the explosive growth in artificial intelligence (AI) infrastructure and the company’s leading role:
- NVIDIA’s GPUs and specialised hardware are central to training and running large AI models.
- Investor enthusiasm for AI has translated into strong demand for the company’s products and strong forward visibility.
- High growth expectations: According to one analysis, the valuation equates to the entire gross domestic product (GDP) of some large countries, underscoring the scale of what the market is betting on.
Implications for investors and the market
- Market leadership: NVIDIA has now become the benchmark for the AI era, meaning its performance strongly influences tech sentiment.
- Index impact: Given its size, shifts in NVIDIA’s value can ripple across major indices and ETFs heavily weighted in tech.
- Forward expectations: With such valuation comes heightened expectations. Execution on product roll-out, supply chain and competition will matter.
- Valuation scrutiny: While the milestone is historic, some analysts caution that the price already reflects a lot of future growth. For example, its forward P/E is substantial. Reuters
Key risks to be aware of
- Geopolitical & trade risks: Export controls—especially to China—and restrictions on advanced chips are a significant concern for NVIDIA.
- Competition and innovation pace: The AI chip space is highly competitive; challengers could erode margins or market share.
- Execution and supply chain: Scaling up for massive AI infrastructure is operationally complex, with risks around bottlenecks, yield issues or demand mis-timing.
- Valuation stretch: Achieving or sustaining the growth that justifies a US$4 trillion+ valuation is non-trivial. Investors should monitor metrics beyond headline market cap.
The big picture
The fact that NVIDIA has hit the US$4 trillion mark is not just a symbolic win — it reflects how deeply the market is invested in the AI story and how central NVIDIA has become to it. The term “NVIDIA market cap” now carries both awe and caution.
Looking ahead, the question isn’t only can NVIDIA stay in this valuation territory but can it deliver the growth to back it up. For long-term investors, tracking revenue growth, profitability, competitive position and global technology trends will be key.
