Nvidia Nears Historic Milestone as Stock Soars Amid AI Boom

Nvidia is making headlines as its stock price reached an all-time high, pushing its market capitalization to $3.89 trillion, positioning it close to surpassing Apple for the highest market value ever recorded. On July 3, during trading hours, Nvidia’s share price surged over 2%, peaking at $160.98, which briefly advanced its market cap beyond Apple’s record $3.915 trillion from late 2024.

As Nvidia continues its upward trajectory, there are speculations that it could soon officially claim the title for the highest market value in corporate history. By the close of trading, Nvidia’s shares had settled at $159.34, marking a 1.33% increase and resulting in a market cap of $3.89 trillion. This movement aligns with broader gains across major U.S. indices, with Nasdaq and S&P 500 reaching new closing highs, advancing 1.02% and 0.83% respectively, while the Dow Jones rose by 0.77%.

Since late May, following its earnings report, Nvidia’s shares have been on a continuous ascent, boasting an annual increase of over 19%. Analyst Dan Ives has expressed confidence that Nvidia could cross the $4 trillion market cap threshold this summer, with potential to challenge the $5 trillion mark within the next 18 months.

The rise in Nvidia’s stock and valuation is chiefly attributed to its leadership in the artificial intelligence industry. As the global demand for AI chips escalates, driven by major tech firms building AI data centers and emerging enterprises focusing on model training and inference, Nvidia's high-end processors are in great demand.

Nvidia’s CEO, Jensen Huang, shared an optimistic outlook at the company’s shareholder meeting on June 25. He highlighted robotics as a prospective growth pillar alongside AI, envisioning comprehensive adoption in autonomous vehicles as a significant commercial application ahead. Huang anticipates billions of robots and millions of fully autonomous cars globally, all powered by Nvidia’s technology, enhancing market sentiment and investor confidence.

Despite the positive sentiments, Nvidia faces challenges, including potential fluctuations in market demand and technological competition. Key clients such as Meta, Alphabet, and Amazon are exploring alternative AI chip solutions, which could, in the long term, lessen their dependency on Nvidia.