NVIDIA Briefly Hits $3.92T, Nears All-Time Market Cap Record
According to reports, NVIDIA's market capitalization briefly reached an unprecedented $3.92 trillion, positioning the AI chip leader as a top contender for the highest valuation in corporate history. Shares of the company rose as much as 2.4% in early trading to $160.98, temporarily surpassing Apple's closing market cap record of $3.915 trillion set on December 26, 2024.
By midday, NVIDIA's stock price was up 1.5% at $159.60, bringing its market value to approximately $3.89 trillion—just under Apple's previous peak. The surge comes as NVIDIA's latest processors continue to gain traction for their performance in training large-scale AI models, reinforcing demand for its high-end hardware.
Microsoft currently holds the second-highest valuation on Wall Street at $3.7 trillion, with its stock up 1.7% to $499.56. Apple, meanwhile, ranks third with a $3.19 trillion valuation following a 0.8% rise in its share price.
As major tech players like Microsoft, Amazon, Meta, Alphabet, and Tesla aggressively invest in next-generation AI data centers, demand for NVIDIA's advanced GPUs has surged. Originally focused on graphics for video games, NVIDIA's core technology now underpins much of the current AI infrastructure, pushing its market cap nearly eightfold since 2021—from $500 billion to almost $4 trillion.
According to data from the London Stock Exchange, NVIDIA's current market valuation exceeds the combined market capitalizations of Canada and Mexico, and even all publicly traded companies in the UK. The company now trades at roughly 32 times forward earnings—below its five-year average P/E ratio of 41—reflecting growing earnings expectations that outpace its share price gains.
NVIDIA's stock has rebounded more than 68% from its recent low on April 4, when fears over global tariffs triggered a broader market pullback. Optimism around a forthcoming U.S. trade deal has since lifted equities, including NVIDIA.
This rising valuation highlights Wall Street's strong bet on the widespread adoption of generative AI—a sector heavily reliant on NVIDIA's hardware. The company now makes up about 7% of the S&P 500 index, while together NVIDIA, Microsoft, Apple, Amazon, and Alphabet account for 28% of the benchmark.
Co-founded in 1993 by CEO Jensen Huang, NVIDIA has evolved from a niche gaming hardware company into a bellwether of the AI revolution. Its inclusion in the Dow Jones Industrial Average in November 2024, replacing Intel, marks a significant shift in the semiconductor industry toward AI-focused development.
Earlier this year, concerns about cost-efficient AI models from China's DeepSeek and renewed U.S.–China trade tensions had temporarily dampened enthusiasm for AI-related investments. However, NVIDIA’s recent momentum reaffirms investor confidence in its leadership at the forefront of the AI hardware race.
