Nvidia has shattered records last week, becoming the world’s first publicly traded company to reach a $4 trillion market capitalisation.
Last Thursday, Nvidia’s market value ended the trading session above $4 trillion for the first time, solidifying the chipmaker’s position as Wall Street’s central player in a race to dominate AI technology. Shares of Nvidia ended up 0.75% at $164.10, giving it a market value of $4.004 trillion and extending its lead over Apple and Microsoft as it benefits from a surge in demand for artificial-intelligence technologies.
This milestone cements Nvidia’s role as the undisputed leader in the artificial intelligence revolution and signals a new era for both the tech sector and global financial markets.
What Drove Nvidia’s Meteoric Rise?
- AI Dominance: Nvidia’s advanced graphics processing units (GPUs) and CUDA software have become the backbone of generative AI infrastructure. Major tech giants—including Microsoft, Amazon, Google, and Meta—are investing billions in Nvidia’s hardware to power their AI data centers.
- Explosive Revenue Growth: In the first quarter of 2025, Nvidia reported $44.1 billion in revenue, a 69% year-over-year increase, with continued strong earnings expected in the coming quarters.
- Market Confidence: Despite market turbulence earlier this year, including a $600 billion valuation drop after new competition from China, Nvidia rebounded sharply, outpacing Apple and Microsoft to claim the top spot among global corporations.
Why This Matters for Traders
- Volatility and Opportunity: Nvidia’s stock has seen significant swings, reflecting both the risks and rewards of trading in high-growth tech. In 2025 alone, the stock has surged over 22%, vastly outperforming the broader market.
- Sector Impact: Nvidia’s success has helped drive a rally in the S&P 500 and tech-heavy Nasdaq, with AI-related optimism lifting the entire semiconductor and technology sector.
- Valuation Metrics: Even at these levels, analysts note Nvidia’s price-to-earnings and price-to-sales ratios remain in line with industry peers, suggesting there may still be room for growth.
Looking Ahead: What to Watch
- Analyst targets: $200–250 price forecasts could fuel further upside.
- Blackwell rollout: Successful execution in AI data centers is key to sustaining growth.
- Geopolitical shifts: Watch U.S.–China export policies closely—they could reshape demand dynamics.
What’s Next?
Nvidia’s leadership in AI hardware shows no signs of slowing. With the upcoming launch of its next-generation Blackwell Ultra chips and growing demand for sovereign AI infrastructure globally, the company is well-positioned for further expansion. Analysts are already speculating whether Nvidia could be the first to hit a $5 trillion valuation in the near future.
Ready to capture the next wave of AI-driven growth?
Log in to your Deltastock account to explore trading opportunities in Nvidia and the broader tech sector. Explore NVDA options, AI-focused ETFs, or hedge with index-linked products through Deltastock’s platforms: the cutting-edge Delta Trading or the popular MetaTrader 5.
Stay ahead of the market—review your portfolio, set alerts, and consider how this historic milestone could impact your trading strategy.
These materials are for information purposes only. They do not post a buy or sell recommendation for any of the financial instruments herein analysed.
Deltastock AD assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page.
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