BUSINESS – On July 10, 2025, Nvidia became the first publicly traded company to close the trading day with a $4 trillion market capitalization, closing at $164.10 per share, up 0.75%—a major milestone that highlights its dominance in the booming artificial intelligence (AI) sector. This closing figure pushes Nvidia ahead of rivals, surpassing big tech peers like Apple ($3.17 trillion) and Microsoft ($3.73 trillion).
This feat was preceded by a brief peak over $4 trillion in morning trading on Wednesday, showing how rapidly the company has surged—more than tripling its value in just over a year after first crossing $1 trillion in June 2023. Over the past 18 months, shares have soared approximately 287%, with about an 18% increase in 2025 alone.
Nvidia’s rise is rooted in its cutting-edge AI chips that power the data centers of major players such as Microsoft, Amazon, Alphabet, and Meta. A senior analyst from Swissquote Bank cautioned that trade tensions, especially U.S. export controls on high-end chips or competition from lower-cost alternatives could pose risks.
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Market experts note that Nvidia now represents around 7.5% of the S&P 500 index, the heaviest weight for any single company. Its influence is even more prominent in tech-heavy benchmarks like the Nasdaq and semiconductors indexes. Despite its lofty valuation, Nvidia is trading at about 33 times expected earnings below its five-year average of 41,suggesting cautious optimism among investors.
Financial analysts highlight both the upside and risks. Robert Pavlik from Dakota Wealth states Nvidia’s ascent reflects how deeply corporate investment has shifted toward AI. Meanwhile, caution remains over possible competition; one advisor noted that in-house chip designs by Amazon, Microsoft, or Meta, along with emerging quantum computing breakthroughs, could challenge Nvidia.
The broader markets were relatively unfazed by this milestone. Although U.S. futures softened amid fresh trade tariff announcements, equity benchmarks climbed overall, buoyed by confidence in tech and interest-rate trends hinting at possible Fed easing.
This historic achievement spotlights Nvidia as the vanguard of the AI-driven economic revolution, yet prompts key questions: Will its chip dominance continue amid intensifying competition? And what regulatory or trade risks could impact future growth?
Source: Reuters.com
