Nvidia Surpasses Historic Marker
On Wednesday, July 9, 2025, Nvidia reached a historic milestone in the financial world. The chip manufacturer achieved a market capitalization of over 4 trillion USD for the first time. On that day, the stock price rose to about 164 USD per share.
Drivers of Growth: AI Chips
This impressive development is largely driven by the continuously high demand for Nvidia’s AI chips. Particularly, the new Blackwell chip is extremely popular. Nvidia has established itself as a leading producer of processors for generative artificial intelligence, a sector currently experiencing exponential growth.
The company’s market value has nearly tenfold since 2021, when it stood at around 500 billion USD. This rapid growth demonstrates investor confidence in Nvidia’s potential in AI technologies.
Market Valuation and Future Potential
On the record day, Nvidia’s market value briefly exceeded 4 trillion USD before slightly retreating and closing at about 3.97 trillion USD. Analysts emphasize that despite a relatively high price-to-earnings ratio (forward P/E of about 33), the valuation is regarded as justified given the strong growth and market-leading position in the AI sector.
In summary, Nvidia is the first company in the world to achieve this impressive market capitalization, and its significance both in the global AI industry and for investors in the financial markets continues to grow.