Nvidia came close to making history this Thursday, nearly becoming the most valuable company ever recorded on Wall Street. Its market value briefly touched $3.92 trillion, just above Apple’s all-time high of $3.915 trillion set in December 2024.
Shares of Nvidia rose by 2.4% in morning trading to reach $160.98. This increase put its value ahead of Apple’s previous record. However, the shares later settled at $159.60, giving Nvidia a final value of $3.89 trillion—slightly short of the historic mark.
Fueled by surging demand for high-end AI chips, Nvidia’s most valuable company moment reflects rising investor faith in artificial intelligence. The company’s latest chips are critical for training advanced AI models, drawing massive orders from leading tech firms.
Microsoft, currently second on the list, saw its value rise to $3.7 trillion. Apple follows in third place at $3.19 trillion. Tech giants like Meta, Amazon, Alphabet, and Tesla are in a tight race to build the next generation of AI data centers. Their reliance on Nvidia’s processors has driven demand sky-high.
Joe Saluzzi, co-manager at Themis Trading, said, “When the first firm hit a trillion, it was a shock. Now we’re nearing four trillion. It’s unbelievable. It shows the gold rush in AI is real.”
Since 2021, Nvidia’s value has soared from $500 billion to nearly $4 trillion—an eight-fold increase in just four years. Today, Nvidia is worth more than the combined stock markets of Canada and Mexico, and it surpasses the entire UK market.
Despite the meteoric rise, Nvidia’s stock trades at 32 times expected earnings for the next 12 months—below its five-year average of 41. Analysts believe strong earnings growth has helped keep the stock’s valuation in check.
The stock has jumped 68% since April 4, when markets fell following President Trump’s global tariff announcements. Since then, optimism has returned with hopes of new trade deals that could ease tensions with China.
The race to adopt generative AI has placed Nvidia at the heart of global innovation. Its chips power most of today’s AI systems, making it a foundation of future tech.
Nvidia now makes up 7% of the S&P 500. Alongside Microsoft, Apple, Amazon, and Alphabet, these five companies control 28% of the index—heavily influencing retirement portfolios tied to index funds.
Still, not everyone is sold. Kim Forrest, CIO at Bokeh Capital Partners, warned, “AI is powerful, but large models may not deliver as promised.”
Founded in 1993 by CEO Jensen Huang, Nvidia started as a gaming chip company. It has since transformed into a global AI leader and now serves as a benchmark for the entire industry.
The recent rally followed a slow start to the year, when tariff concerns and China’s DeepSeek disrupted investor confidence. That startup released a budget AI model that outperformed rivals, raising fears of reduced spending on high-end chips.
In November, Nvidia replaced Intel on the Dow Jones Industrial Average, marking a major industry shift toward AI and graphics-driven development.
Nvidia’s most valuable company milestone shows that the future of tech is deeply tied to artificial intelligence—and Nvidia is leading the charge.
