Nvidia’s (NVDA) stock rose more than 2% on July 9, becoming the first company ever to achieve a $4 trillion market capitalization.
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The chipmaker’s stock has boomed since the mid-April stock market bottom as investors pile back into the artificial intelligence (AI) trade. Nvidia is now the world’s most valuable company, surpassing Microsoft (MSFT) and Apple (AAPL), which each have a $3 trillion market cap.
Silicon Valley-based Nvidia, which was founded in 1993, only achieved a $1 trillion market capitalization in June 2023. It surpassed the $2 trillion mark in February 2024, and hit $3 trillion in June of this year. The rapid growth of the company’s market value demonstrates the stocks meteoric growth.
Chip Demand
NVDA stock has marched steadily higher as demand for its AI hardware and microchips powers its financial results. The company is the world leader in the market for graphics processing units (GPUs) that power the large language models behind AI models and applications.
Nvidia’s profit growth was 63% in the most recent reporting period, specifically for Q4, according to some financial reports.