&w=3840&q=100)
With $3.92 trn valuation, Nvidia on track to become most valuable company
Shares of the leading designer of high-end AI chips rose as much as 2.4 per cent to $160.98 in morning trading, giving the company a higher market capitalization than Apple's record closing value of $3.915 trillion on December 26, 2024.
The shares were last up 1.5 per cent at $159.60, leaving Nvidia's stock market value at $3.89 trillion, just short of Apple's record.
Nvidia's newest chips have made gains in training the largest artificial-intelligence models, fueling demand for products by the Santa Clara, California, company.
Microsoft is currently the second-most valuable company on Wall Street, with a market capitalization of $3.7 trillion as its shares rose 1.7 per cent to $499.56.
Apple rose 0.8 per cent, giving it a market value of $3.19 trillion, in third place.
A race among Microsoft, Amazon.com, Meta Platforms , Alphabet and Tesla to build AI data centers and dominate the emerging technology has fueled insatiable demand for Nvidia's high-end processors.
"When the first company crossed a trillion dollars, it was amazing. And now you're talking four trillion, which is just incredible. It tells you that there's this huge rush with AI spending and everybody's chasing it right now," said Joe Saluzzi, co-manager of trading at Themis Trading.
The stock market value of Nvidia, whose core technology was developed to power video games, has increased nearly eight-fold over the past four years, from $500 billion in 2021 to now near $4 trillion.
Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets, according to LSEG data. The tech company also exceeds the total value of all publicly listed companies in the United Kingdom.
Nvidia recently traded at about 32 times analysts' expected earnings for the next 12 months, below its average of about 41 over the past five years, according to LSEG data. That relatively modest price-to-earnings valuation reflects steadily increasing earnings estimates that have outpaced Nvidia's sizable stock gains.
The company's stock has now rebounded more than 68 per cent from its recent closing low on April 4, when Wall Street was reeling from President Donald Trump's global tariff announcements. U.S. stocks, including Nvidia, have recovered on expectations that the White House will cement trade deals to soften Trump's tariffs.
Nvidia's swelling market capitalization underscores Wall Street's big bets on the proliferation of generative AI technology, with the chipmaker's hardware serving as the foundation.
The sharp increases in the shares of Nvidia and other Wall Street heavyweights have left people who save for their retirements through widely used S&P 500 index funds heavily exposed to the future of AI technology.
Nvidia now accounts for 7 per cent of the S&P 500. Nvidia, Microsoft, Apple, Amazon and Alphabet together make up 28 per cent of the index.
"I strongly believe that AI is a greatly productive tool, but I am fairly sure that the current delivery of AI via large language models and large reasoning models are unlikely to live up to the hype," cautioned Kim Forrest, chief investment officer at Bokeh Capital Partners.
Co-founded in 1993 by CEO Jensen Huang, Nvidia has evolved from a niche company popular among video game enthusiasts into Wall Street's barometer for the AI industry.
The stock's recent rally comes after a slow first half of the year, when investor optimism about AI took a back seat to worries about tariffs and Trump's trade dispute with Beijing.
Chinese startup DeepSeek in January triggered a selloff in global equities markets with a cut-price AI model that outperformed many Western competitors and sparked speculation that companies might spend less on high-end processors.
In November of last year, Nvidia took over the spot on the Dow Jones Industrial Average formerly occupied by chipmaker Intel, reflecting a major shift in the semiconductor industry toward AI-linked development and the graphics processing hardware pioneered by Nvidia.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
23 minutes ago
- Time of India
Microsoft layoffs: Tech giant cuts 830 jobs in home state
Microsoft recently announced that it has laid off 9,000 employees. Among the thousands of jobs eliminated, 830 employees in the company's home state of Washington have been impacted. Tired of too many ads? go ad free now These layoffs are part of a broader effort by the tech giant to streamline operations. According to CNBC, a document submitted by Microsoft to Washington employment officials reveals the impact of the layoffs across various departments. Microsoft cuts jobs across gaming, engineering and research departments Within the gaming sector, nearly a dozen game design workers in the state were let go, alongside three audio designers, the report said. The cuts also extended to engineering and research, affecting two mechanical engineers, one optical engineer, and one lab technician. Microsoft Research saw the departure of five individual contributors and one manager. Additionally, the company laid off 10 lawyers and six hardware engineers, the publication reported. Sales and cloud divisions also affected The restructuring also hit Microsoft's sales force, with 16 customer success account management staff, 28 in sales strategy enablement, and five in sales compensation roles based in Washington being let go, the report said, adding that a Washington-based government affairs worker was also included in the reductions. Even the growing cloud services division experienced cuts, with 17 jobs eliminated in cloud solution architecture within the state. This comes as Microsoft's fastest revenue growth continues to be driven by Azure and its other cloud offerings. While CEO has not publicly commented on these latest layoffs, many Microsoft salespeople and video game developers have taken to social media to announce their departures. During an April conference call with analysts, Microsoft CFO Amy Hood had indicated the company's 'focus on cost efficiencies' during the March quarter.
Time of India
26 minutes ago
- Time of India
‘Big Beautiful Bill': Democrats sound alarm after Trump's sweeping bill passes house
President Donald Trump's tax-cut legislation cleared its final hurdle in the U.S. Congress on July 3 as the Republican-controlled House of Representatives narrowly approved a massive package that would fund his domestic agenda and push millions of Americans off health insurance. The 218-214 vote amounts to a significant victory for the Republican president that will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign. Every Democrat in Congress voted against it, blasting the bill as a giveaway to the wealthy that would leave millions uninsured. Show more Show less
&w=3840&q=100)
Business Standard
35 minutes ago
- Business Standard
India proposes retaliatory duties against US's auto tariffs at WTO
India on Friday proposed retaliatory duties at the World Trade Organisation (WTO) against the tariffs imposed by the United States (US) on automobiles and certain auto parts, even as both nations are close to finalising an interim trade agreement. 'The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the United States. Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations referred to in Article 8.2, AoS, India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification,' according to a WTO notification. India further stated that the safeguard measures will impact $2.895 billion worth of Indian-origin auto product exports annually, with duties totalling $723.75 million. Therefore, India plans to suspend trade concessions of equivalent value in response. Last month, India submitted a formal notification to the WTO under the Agreement on Safeguards, informing the multilateral trade body of its intention to suspend concessions under the agreement in response to tariffs imposed by the US on steel, aluminium, and their derivative products. India's position is that the US tariffs—imposed under Section 232 of the US Trade Expansion Act of 1962—amount to safeguard measures under WTO rules, entitling India to withdraw equivalent concessions. Currently, all eyes are on the announcement of the interim trade deal between both nations, as the 90-day pause on the US's plan to impose country-specific reciprocal tariffs ends on 9 July. Both sides are aiming to finalise an 'early tranche' or the first part of a broader bilateral trade agreement (BTA), which was announced by Prime Minister Narendra Modi and US President Donald Trump in February.
