Nvidia Breaks $4 Trillion Market Capitalization, Representing 3% of Global Markets.

Nvidia has surpassed $4 trillion in market capitalization, exceeding the combined value of Apple and Tesla. Its size now accounts for 3% of total market capitalization. The company's record results are a symbol of market concentration, with large tech stocks gaining weight in indices due to their significant profits. While the situation is unhealthy, it is justified by the companies' consistent outperformance.

Nvidia Corporation (NVDA) has achieved a remarkable milestone, becoming the first company to exceed a market capitalization of $4 trillion. This significant feat, announced on Thursday, July 3, 2025, underscores the company's dominant position in the artificial intelligence (AI) chip market [1].

The surge in Nvidia's market value was driven by Wall Street's optimism surrounding AI technology. Specialized chips from Nvidia are crucial for training large AI models, fueling immense demand for its products. The company's market capitalization of $3.92 trillion surpassed Apple's previous record of $3.915 trillion, set on December 26, 2024 [1].

Nvidia's stock market value has skyrocketed nearly eight-fold over the past four years, growing from $500 billion in 2021 to nearly $4 trillion. This impressive growth is a testament to the company's strategic focus on AI and its ability to capitalize on emerging technologies [1].

Nvidia's size now accounts for 3% of total market capitalization, reflecting the growing concentration of market value among large tech stocks. This market concentration is justified by the companies' consistent outperformance, as seen in Nvidia's record-breaking rally over the past two years [1].

Despite the impressive growth, Nvidia's stock is currently rated as a "Hold" by the Zacks Rank system, considering recent modifications to analyst estimates. The company's Forward P/E ratio of 37.07 is a discount compared to the average Forward P/E of 38.86 in its industry. Additionally, Nvidia's PEG ratio of 1.31 is lower than the average PEG ratio of 2.72 for the Semiconductor - General industry [1].

Citi Bank has also raised its price forecast for Nvidia, expecting sharp sales increases and raising its price target to $190 per share, implying a roughly 15% upside from Nvidia’s current trading levels. The firm believes sovereign demand is already contributing up to billions of dollars in 2025 and should ramp up further in 2026 [2].

Nvidia's recent earnings report, expected on August 27, 2025, is anticipated to show an EPS of $0.99, marking a 45.59% rise compared to the same quarter of the previous year. The latest consensus estimate predicts the revenue to be $45.69 billion, indicating a 52.1% increase compared to the same quarter of the previous year. For the full year, analysts are expecting earnings of $4.24 per share and revenue of $197.54 billion, marking changes of +41.81% and +51.37%, respectively, from last year [1].

Nvidia's success highlights the potential of AI technology and the importance of specialized chips in driving innovation. As the company continues to lead in AI chip development, investors will be closely watching its earnings reports and stock performance.

References:
[1] https://www.ainvest.com/news/nvidia-surpasses-4-trillion-market-cap-ai-optimism-2507/
[2] https://cryptorank.io/news/feed/58b8f-citi-hikes-nvidia-nvda-stock-price-target-should-you-buy