Nvidia Becomes First Company Ever To Cross $4 Trillion Market Cap

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New Delhi: Nvidia has just made history by becoming the world’s first publicly listed company to cross a market value of $4 trillion. The chipmaker’s stock hit a record high of 164 dollars on Wednesday, rising 2.5 per cent, as soaring demand for artificial intelligence (AI) continues to fuel its rapid growth.

Nvidia’s latest surge wraps up an incredible year for the company. After crossing the 1 trillion dollars mark in June 2023, it has now quadrupled its value in just over 12 months—something even tech giants like Apple and Microsoft took much longer to achieve. While both those companies are valued at over $3 trillion, Nvidia's rapid rise has outpaced them all.

Microsoft is now the second-most valuable U.S. company, with a market value of 3.75 trillion dollars, after its shares rose 1.3 per cent in the same trading session. Nvidia, meanwhile, has made a strong comeback after recent market worries. Since hitting a low in April, its stock has jumped about 74 per cent, recovering from concerns driven by global tensions and a tariff dispute linked to former U.S. President Donald Trump.

Hopes of new trade deals have lifted overall market sentiment, sending the S&P 500 to record highs. Nvidia now holds the biggest weight in the index at 7.3 per cent, edging past Apple and Microsoft which have weights of around 7 per cent and 6 per cent  respectively.

To grasp how massive Nvidia has become, consider this: its market value is now bigger than the combined stock markets of Canada and Mexico. It has even surpassed the total value of all public companies in the UK, according to LSEG data. Yet despite its rapid rise, Nvidia’s stock still appears attractive to investors—it’s trading at a forward price-to-earnings (P/E) ratio of 32, which is actually below its three-year average of 37.