NVIDIA's Stock Surges 1.33% to $3.89 Trillion, Nears Apple's Record

NVIDIA Corporation (NVDA.US) experienced a significant surge in its stock price, rising by 1.33% on July 4, just before the U.S. Independence Day holiday. This increase pushed the company's market capitalization to $3.89 trillion, with an intraday peak of $3.92 trillion. This achievement places NVIDIA within close proximity to Apple's record market capitalization of $3.915 trillion, set in late 2024. The company's rise is largely attributed to its dominance in the artificial intelligence (AI) chip market, where its innovative products continue to set industry benchmarks.

NVIDIA's latest milestone underscores its growing influence in the technology sector. The company's AI chips are essential components in various applications, ranging from data centers to autonomous vehicles. This market dominance is reflected in the soaring stock price, highlighting the increasing demand for AI technologies and NVIDIA's pivotal role in this rapidly evolving field.

The company's success can be attributed to its strategic investments in research and development, which have led to groundbreaking innovations. NVIDIA's AI chips are renowned for their efficiency and performance, making them a preferred choice for both tech giants and startups. The company's ability to stay ahead in AI technology has positioned it as a leader in the global market.

NVIDIA's journey to becoming one of the most valuable companies in the world is a testament to its visionary leadership and relentless pursuit of innovation. The company's focus on AI has not only driven its financial success but also positioned it as a key player in shaping the future of technology. As the demand for AI continues to grow, NVIDIA is well-positioned to maintain its leadership role and further solidify its position as a global tech powerhouse.

In contrast, Apple's market capitalization has been on a downward trend recently. The slow progress in AI innovations has caused Apple to fall behind in the AI race against competitors like Microsoft and NVIDIA. Additionally, the reopening of the tariff issue by former U.S. President Trump, which threatens to impose additional tariffs on Apple's overseas-produced products, has added to the company's uncertainties.

NVIDIA's stock price has been on a steady upward trajectory since the release of its financial report at the end of May. Since the beginning of 2025, the company's stock has seen a year-to-date increase of over 19%.

Analysts have expressed optimism about NVIDIA's future prospects. Dan Ives, an analyst, predicts that NVIDIA's market capitalization could surpass $4 trillion by the end of the summer and potentially reach $5 trillion within the next 18 months. Ives believes that technology stocks will perform strongly in the second half of the year, driven by the anticipated $2 trillion investment in AI technology by enterprises and governments over the next three years.

However, not all market observers share this optimism. Jim Chanos, a prominent short seller, has compared the current AI market frenzy to the dot-com bubble. Chanos warns that the revenue sources of AI-related companies are fragile and could be quickly reduced if investors or enterprises cut back on spending. This could lead to delays or cancellations of AI projects, impacting revenue and earnings projections. Chanos cautions that while the market has not yet reached the bursting point of the bubble, the risk is real and may be underestimated.