Nvidia becomes world's first company to reach US$4t valuation
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The news: Nvidia has become the first company in history to achieve a USD4 trillion ($6.1 trillion) market capitalisation, as it rides a rebound across Wall Street’s technology stocks in recent months.
The numbers: Shares in US-based Nvidia rose 2.8% on Wednesday to USD164.42, having already risen by over 40% since the beginning of May and it up over 1,000% since the beginning of 2023.
Nvidia now accounts for 7.5% of the S&P 500 Index.
The context: A clutch of the globe’s leading tech giants including Amazon, Microsoft, Meta and Alphabet have made commitments to spending on artificial intelligence. Bloomberg estimates that the companies, which account for over 40% of Nvidia’s revenue, are projected to invest around USD350 billion into capital expenditures in their upcoming fiscal years.
In early 2025 Nvidia’s momentum dwindled, as China’s DeepSeek models spurred concerns that big spending on AI would slow followed by Trump’s tariff threat in April shook investors into selling tech stocks.
By May, however, trade talks progressed and spending commitments from key customers and new deals in the Middle East brought investors back toward risky assets. CEO Jensen Huang also fanned investor appetite with bullish predictions that AI and robotics will fuel trillions of dollars in sales for Nvidia in the future.
Nvidia’s revenue is projected to reach almost USD200 billion in 2025, up 55% year on year. Net income this year is forecast to be USD105 billion, according to analyst estimates collected by S&P Capital IQ, with gross margins of more than 70%.
