Nvidia becomes first company to hit US$4 trillion valuation amid AI boom

NEW YORK: Nvidia just became the first publicly traded company to reach a US$4 trillion market valuation on Wednesday (July 9), after its shares rose 2.8% to US$164.42 (S$210.34).

Back in January, Nvidia faced pressure after its shares fell 17% over concerns that China’s DeepSeek was using fewer of its chips compared to US competitors. Still, the company said it was confident demand would hold.

According to The Edge Singapore, the stock is now up more than 20% in 2025 and has gained over 1,000% since early 2023. It also now makes up 7.5% of the S&P 500 Index, pointing to the increasing presence of the overall technology sector, Reuters reported.

Client portfolio manager Brian Mulberry at Zacks Investment Management noted that there’s “obviously tremendous demand” for Nvidia’s chips, amid its role in the artificial intelligence (AI) race. He said the recent rally since April shows how quickly the market has shifted its focus back to AI infrastructure.

“It’s been a pretty remarkable 90-day period. There’s no doubt about that,” he added.

The company’s chips remain central to the AI boom, with strong demand from tech giants Microsoft, Meta, Amazon, and Alphabet. These four companies are expected to spend a combined US$350 billion on capital expenses in their next fiscal years, up from US$310 billion this year, as per Bloomberg analysts’ estimates. These companies contribute more than 40% of Nvidia’s total revenue.

Other tech giants approaching Nvidia’s US$4 trillion valuation include Microsoft, with a valuation of roughly US$3.7 trillion, and Apple, valued at US$3.1 trillion.

Reuters reported that alongside Nvidia’s rally, Microsoft has climbed 19% in 2025, Oracle 40%, and Palantir 88%. /TISG

Read also: Nvidia CEO says that if he were a student today, he would learn AI to have a successful career

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