Nvidia is about to become the most valuable company in the world. On Thursday, its market value reached $3.92 trillion, thanks to strong support from investors who believe in the future of artificial intelligence (AI).
The company’s stock price went up by 2.2%, reaching $160.60. This pushed Nvidia’s total value slightly above Apple’s previous record of $3.915 trillion set in December 2024.
Nvidia makes powerful computer chips that are used to train advanced AI models. These chips are in high demand, especially as tech giants like Microsoft, Amazon, Meta, Alphabet, and Tesla rush to build AI data centers.
Microsoft is currently second on the list of top companies with a market value of $3.7 trillion, followed by Apple at $3.19 trillion.
Joe Saluzzi, a trading expert, said: “It’s amazing how fast things are moving. The first time a company reached $1 trillion, it was a big deal. Now we’re talking about $4 trillion, which shows how serious the AI boom is.”
Nvidia’s value has grown almost eight times since 2021, when it was worth $500 billion. It’s now worth more than all the companies listed in the UK and even more than the entire stock markets of Canada and Mexico combined.
Currently, Nvidia’s stock is trading at about 32 times its expected earnings for the next year. This is lower than its average of 41 over the past five years, showing that the company’s profits are growing fast enough to justify the high price.
The stock has jumped over 68% since April 4, when the market dropped due to former President Donald Trump’s tariff news. Investors now expect the government to reach trade deals that will ease those concerns.
Nvidia makes up nearly 7.4% of the S&P 500 index, which tracks the largest companies in the U.S.
AI Industry Leader
Nvidia’s rise shows how much Wall Street believes in the future of generative AI. The company, founded in 1993 by CEO Jensen Huang, started by making graphics chips for video games but has now become a key player in the AI world.
After a slow start to the year due to fears over tariffs and China–U.S. trade tensions, Nvidia’s stock is once again climbing. In January, a Chinese AI company called DeepSeek launched a cheaper model that performed well, making investors worry that Nvidia’s high-end chips might face competition.
Despite that, Nvidia is still leading the AI hardware market. In November last year, it replaced Intel on the Dow Jones Industrial Average — a major sign of how the chip industry is now focused on AI technology.
