Good news, Hodlers! Nvidia has officially hit a $4 trillion market capitalization, becoming the first company ever to do so. The American semiconductor giant managed to outrun tech titans Microsoft and Apple to the milestone, with its stock price hitting a historic high on Wednesday.
🔥NVIDIA $NVDA becomes the first company in history to hit a $4 TRILLION market cap!
— HodlFM Team (@Hodl_fm) July 9, 2025
Milestones:
– $1T: May 30, 2023
– $2T: Feb 23, 2024
– $3T: June 5, 2024
– $4T: July 9, 2025
From GPUs to global dominance - what a run! pic.twitter.com/b37pSIJe1P
Shares shot up around 2% during early trading, reaching a record-breaking $164.32, before cooling off to $163.63 in pre-market trading, according to Google Finance. But let's not get too worked up, it’s still a massive achievement. And hey, that dip? It’s just a minor bump on the road to the stars.
What’s fueling this surge? Investor excitement over the transformative potential of AI. Nvidia’s valuation skyrocketed thanks to AI's ever-growing dominance in tech, but a small retreat in after-hours trading brought the market cap back to a more humble $3.98 trillion. Still, pretty impressive, right?
AI is the Future, and Nvidia’s Leading the Charge
The big numbers are great, but let’s talk about what’s really pushing Nvidia to the top. Robert Pavlik, a senior portfolio manager at Dakota Wealth, told Reuters that the company’s success is no accident.
“Companies are shifting their asset spend in the direction of AI, and it’s pretty much the future of technology.”
Seems like AI is the new gold rush, and Nvidia is the prospector striking it rich.
Nvidia started as a gaming chipmaker, then pivoted to crypto mining chips, and now? It’s the chipmaker for artificial intelligence computing power. According to Art Hogan, chief market strategist at B Riley Wealth, Nvidia has quickly become “a clear early winner of artificial intelligence.” So, yeah, it’s safe to say they’re on a roll.
A Bumpy Ride, but Nvidia Bounces Back Strong
Despite some setbacks earlier this year, remember that $5.5 billion valuation loss due to concerns over Chinese AI competitors and US export restrictions, and a massive $600 billion market cap decline in January, Nvidia has proven its resilience. The company reported a jaw-dropping $44 billion in revenue and $19 billion in earnings for the first quarter, a 26% increase from last year. Talk about a strong comeback!
And don’t forget, Nvidia’s stock has climbed 21.3% this year, easily outpacing the S&P 500’s modest 6.5% gain over the same period. Looks like Nvidia is on a mission to prove it’s not just a chipmaker; it's a tech giant in its own right.
Who’s Challenging Nvidia’s Market Dominance?
Let’s take a look at the competition. Microsoft is the second-largest company by market cap, sitting at $3.74 trillion, while Apple is third with $3.15 trillion.
These three are the only companies with market caps over $3 trillion. Meanwhile, Bitcoin (BTC) is still lagging behind with a market cap of $2.2 trillion, less than half of Nvidia's. In fact, the entire cryptocurrency market, valued at $3.53 trillion, is still smaller than Nvidia’s market cap.
Looks like Nvidia is living large, and the rest of the market is just trying to keep up. Who knew chips could be so hot?
Gunel Ismayilova
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