The company’s capitalisation momentarily surpassed Apple’s previous all-time record market cap of $0.915 trillion set on December 26, 2024, when Nvidia’s stock surged 2.4% to $0.98 during intraday trade.
Nvidia became the most valuable publicly listed business in the world on Thursday as its stock reached an all-time high, putting its market capitalisation nearly at the trillion-dollar milestone. Investors’ continued optimism over AI was a major factor in this milestone.
During the day, the AI chipmaker’s shares increased 2.4% to 0.98, bringing its valuation to .92 trillion, just shy of Apple’s all-time high. Nvidia’s stock, however, closed 1.33% higher at 9.34 at the end of the trading day, putting the company’s closing valuation at .89 trillion, still ahead of both Apple and Microsoft.
After its shares increased 1.58% to close at 8.84, Microsoft maintained its position as the second-most valuable firm on Wall Street with a market worth of $2.71 trillion. Third place went to Apple, whose shares increased by 0.52% to .55 per, bringing its market value to .19 trillion.
Nvidia’s valuation has increased by almost eight times since 2021, from zero billion to roughly a trillion dollars, as a result of the AI revolution and the surge in demand for high-performance CPUs. Nvidia, which was once recognised for creating graphics processors for video games, is now the driving force behind the generative AI revolution, supplying data centres and AI infrastructure to major tech companies.
With the Nasdaq Composite closing at a record high of 20,601.10, up 207.97 points (1.02%), Nvidia’s surging stock has also helped the whole market.
Nvidia’s current valuation exceeds the total market capitalisation of all publicly traded companies in the United Kingdom, per LSEG statistics that Reuters reported. Nvidia’s market value has now grown larger than the total worth of all publicly traded companies across both Mexico and Canada.
Despite its rapid surge, Nvidia is trading at roughly 32 times the projected earnings for the next 12 months—lower than its five-year average P/E ratio of around 41—indicating that its earnings growth continues to support its rising stock price. This implies that its profits are increasing quickly enough to sustain the growth of its stock price.
Currently, Nvidia accounts for 7% of the total weight of the S\&P 500 index. These five tech giants have a big influence on American stocks, as seen by the fact that they make up 28% of the benchmark index together with Microsoft, Apple, Amazon, and Alphabet. Some of the most advanced large language models in the world are being trained using the company’s most recent generation of AI processors, which is driving up demand from cloud providers and big tech businesses. Demand for Nvidia’s cutting-edge CPUs has only grown as a result of the fierce battle among Tesla, Amazon, Alphabet, Microsoft, and Meta Platforms to create next-generation AI infrastructure.
(With Reuters’ assistance.)
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