Nvidia nears a $4 trillion valuation, surpassing Apple's record

Nvidia's valuation nears $4 trillion, surpassing Apple's record, reflecting AI-driven growth.

: Nvidia's market capitalization reached $3.92 trillion during intraday trading, almost hitting the $4 trillion mark. This brief surge allowed it to exceed Apple's prior record of $3.915 trillion. The valuation reflects increasing optimism about AI, driven by Nvidia's cutting-edge AI chips used by giants like Microsoft and Tesla. Additionally, Nvidia reported a 69% increase in revenue, reaching $44.1 billion for the most recent quarter.

Nvidia recently approached a landmark $4 trillion valuation, momentarily overtaking Apple's highest market cap of $3.915 trillion, recorded in late 2024. This jump was fueled by intense demand for its AI chips, placing Nvidia at the forefront of the ongoing AI revolution. By the close of trading, Nvidia's value settled at $3.89 trillion. Joe Saluzzi from Themis Trading remarked on the enormity of the valuation, highlighting the significant rush in AI spending.

The company's rapid valuation rise represents a broader sentiment on Wall Street about AI's bright future. Nvidia's sophisticated chips are essential for executing the largest and most complex AI models, igniting a fierce competition among tech giants like Microsoft, Amazon, Meta, Alphabet, and Tesla. Nvidia's next-generation hardware serves as the backbone for building expansive data centers necessary for advancing AI capabilities.

Financial data from LSEG illustrated that Nvidia's current worth surpasses that of every publicly traded company in Canada and Mexico combined. The company, which was valued at $500 billion four years prior and primarily recognized for video game graphics technology, has seen its market cap multiply eightfold due to the escalating growth in AI applications.

Despite dominating the tech valuation charts, Nvidia is not without challenges. Trade restrictions hinder the sale of its advanced chips to China, and competition is heating up with companies like Apple and OpenAI developing custom AI hardware. Nevertheless, Nvidia's diversification into sectors such as autonomous vehicles suggests its technological influence will continue.

In their most recent quarterly report, Nvidia stated revenues of $44.1 billion for the quarter, with data center sales alone generating $39.1 billion. This means it could reach nearly $170 billion in annual revenue by fiscal 2026. Analysts are closely watching if the company will consistently maintain its market cap, potentially reaching or surpassing the $4 trillion milestone.

Sources: TechSpot, Reuters

AIdata centerStocks