On July 3, 2025, Nvidia’s market capitalisation reached $3.92 trillion, briefly surpassing Apple’s record to become the world’s most valuable company, driven by booming demand for its AI chips.
Nvidia’s shares rose 2.2% to $160.6 on July 3, pushing its market cap to $3.92 trillion, topping Apple’s $3.915 trillion record from December 2024. By day’s end, shares settled at $159.60, valuing Nvidia at $3.89 trillion, just shy of the record. Microsoft held second place at $3.7 trillion, with Apple at $3.19 trillion. The surge, fueled by AI chip demand, marks an eight-fold increase from Nvidia’s $500 billion valuation in 2021, per LSEG data.
Sam Stovall, chief investment strategist at CFRA Research, said Nvidia's skyrocketing market capitalization indicates that tech-related stocks should drive the stock market for ‘years to come’ https://t.co/uDgPz0APRx pic.twitter.com/zmc5CZavb0
— Reuters (@Reuters) July 4, 2025Nvidia’s leadership in AI chips, powering models for Microsoft, Amazon, and Meta, has driven its growth. CEO Jensen Huang’s focus on next-generation chips like Blackwell and Rubin, announced in 2025, sustains demand, with data centre revenue projected at $115 billion for fiscal 2025, per Loop Capital. Despite a January sell-off sparked by China’s DeepSeek AI model, Nvidia rebounded 68% from its April low, bolstered by easing U.S.-China trade tensions.
Nvidia’s 7.4% weight in the S&P 500 reflects Wall Street’s AI optimism, with the index up 23.3% in 2024, per Reuters. Joe Saluzzi of Themis Trading noted, “There’s a huge rush with AI spending,” though some, like Kim Forrest of Bokeh Capital, caution that AI hype may not fully deliver. Nvidia’s price-to-earnings ratio of 32, below its five-year average of 41, suggests earnings growth outpaces stock gains, per LSEG.
Nvidia’s $3.92 trillion milestone underscores its transformation from a gaming chipmaker to AI industry leader, impacting global markets and retirement funds tied to the S&P 500. Its dominance, amid shifts in trade policy under President Trump, shapes tech investment trends.
