AI boom propels Nvidia to historic market cap milestone
Although the stock dipped below that mark by market close, Nvidia's ascent reflects how investor enthusiasm for AI is reshaping the technology landscape.
The milestone also signals a change in the guard: Nvidia's market cap now stands $900 billion above Apple's, the company that once redefined personal technology with the iPhone. Apple was the first firm to hit the $1 trillion, $2 trillion, and $3 trillion marks, but has recently struggled to match the AI-driven momentum propelling Nvidia forward.
Apple has promised AI enhancements to its products, including its often-criticized virtual assistant Siri, but delivery is lagging. The company recently acknowledged that meaningful AI upgrades won't arrive until at least next year, prompting speculation among analysts that it may need to acquire a dedicated AI start-up to stay competitive.
Meanwhile, Nvidia is racing to meet sky-high demand for its high-performance chips, which power the energy-hungry data centers driving today's AI applications. The company's influence is growing so fast that its founder and CEO, Jensen Huang, has earned the moniker "the godfather of AI." His keynote speeches now draw rapt audiences, and his personal fortune has swelled to an estimated $142 billion.
Adding to the AI momentum, tech giants including Microsoft, Amazon, Google's parent Alphabet, and Meta Platforms are collectively pouring about $325 billion into AI investments this year — a large portion of which is expected to benefit Nvidia.
Nvidia's meteoric stock rise — up tenfold since early 2023 — has propelled its market value from roughly $400 billion to briefly over $4 trillion. After reaching a high point early Wednesday, shares closed at $162.88. However, analysts remain bullish: CFRA's Angelo Zino predicts the stock could hit $196 within a year, pushing Nvidia's valuation toward $4.8 trillion.
The company faced turbulence in April when President Donald Trump's announcement of sweeping tariffs sparked a tech-sector selloff that sent Nvidia's stock tumbling below $87. But it rebounded quickly, posting a blockbuster quarter in late May with $18.8 billion in profit, even after absorbing a $4.5 billion hit from U.S. export restrictions on chip sales to China.
Nvidia is slated to report its subsequent quarterly earnings on August 27. Investors and industry observers alike will be watching closely as the company continues to define the cutting edge of the AI era.
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