Nvidia becomes first company with market capitalization reaching $4 trillion.

Nvidia becomes first company with market capitalization reaching $4 trillion.

Nvidia Corporation (NVDA) has achieved a significant milestone in the tech industry, becoming the first company with a market capitalization exceeding $4 trillion. This remarkable feat was announced on Thursday, July 3, 2025, and underscores the company's dominant position in the artificial intelligence (AI) chip market.

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. This significant milestone positions Nvidia as the most valuable company in history.

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. The company's market capitalization now exceeds the combined value of all publicly listed companies in Canada, Mexico, and even the United Kingdom.

The company'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.

Despite the impressive growth, Nvidia's stock is currently rated as a "Hold" by the Zacks Rank system, which considers 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.

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.cnn.com/markets/stocks/NVDA
[2] https://www.nasdaq.com/articles/nvidia-nvda-outpaces-stock-market-gains-what-you-should-know
[3] https://timesofindia.indiatimes.com/technology/tech-news/nvidia-sets-new-record-leaves-apple-and-microsoft-behind-to-become-first-company-in-history-to-achieve-this-milestone/articleshow/122232314.cms