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Chipmaker Nvidia becomes first company to surpass $4 trillion in valuation

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Published: Wednesday, July 9, 2025 at 2:48 pm

Nvidia Soars to Unprecedented Heights, Surpassing $4 Trillion Valuation

In a landmark achievement, chipmaker Nvidia has become the first public company to reach a market capitalization exceeding $4 trillion. The milestone, reached on Wednesday, reflects a remarkable surge in the company's value driven by the burgeoning artificial intelligence (AI) sector.

Nvidia's stock experienced a 2.5% increase in early trading, reaching over $164 per share. This represents a dramatic rise from the beginning of 2023, when shares were valued around $14 each. This growth has propelled Nvidia to become the most valuable company globally, surpassing tech giants like Microsoft, Apple, Amazon, and Google's parent company, Alphabet. The company's influence is significant, with its stock movement carrying considerable weight on the S&P 500 and other market indexes, second only to Apple.

The company's ascent is a testament to its strong financial performance. In its most recent quarter, Nvidia demonstrated robust growth, reporting earnings of $18.8 billion, or 76 cents per share, a 26% increase year-over-year. Revenue also saw a substantial surge, climbing 69% to $44.1 billion compared to the previous year. While the company absorbed a $4.5 billion charge due to U.S. government restrictions on chip sales to China, its underlying profitability remained strong. Analysts anticipate continued success, with expectations of record sales and profits in the upcoming second quarter.

Nvidia's success, alongside other companies benefiting from the AI boom, has been a key driver behind the S&P 500's recent record-breaking performance. This market strength has occurred despite economic concerns, including persistent inflation and potential economic impacts from tariffs and other policies.

BNN's Perspective:

Nvidia's unprecedented valuation underscores the transformative power of AI and its impact on the global economy. While the rapid growth of companies like Nvidia is encouraging for investors and the broader market, it's crucial to monitor the potential for market volatility and the long-term sustainability of this growth. A balanced approach, considering both the opportunities and risks associated with this evolving landscape, is essential for navigating the future.

Keywords: Nvidia, AI, market capitalization, stock, S&P 500, earnings, revenue, chipmaker, valuation, technology, investment, financial performance, growth, artificial intelligence, shares

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