Nvidia Reaches $4T Valuation, Overtakes Apple as Most Valuable Company

Nvidia has surpassed Apple to become the first company with a $4T valuation, driven by the demand for its AI servers in generative AI applications. The company's high-performance GPU chips have been in high demand for crypto mining and machine learning, leading to a spectacular rise in value over the past year. It remains to be seen if Nvidia's valuation is sustainable or if it is in a temporary bubble.

Nvidia, the leading designer of high-end AI chips, has achieved a remarkable milestone by surpassing Apple to become the first company with a $4 trillion market capitalization. This unprecedented feat was driven by the surging demand for its advanced AI servers, particularly in the realm of generative AI applications [1].

The company's market value soared to $3.92 trillion on July 3, 2025, briefly surpassing Apple's previous record of $3.915 trillion set in December 2024. This impressive achievement positions Nvidia within striking distance of becoming the first company to reach a $4 trillion market capitalization [1].

Nvidia's meteoric rise is primarily attributed to the surging demand for its advanced AI chips. The company's newest processors have become essential for training and running the largest artificial intelligence models, fueling a race among tech giants to build powerful AI data centers. Major players like Microsoft, Amazon, Meta, Alphabet, and Tesla are all competing to expand their AI infrastructure, with Nvidia's specialized hardware at the core of this transformation [1].

Nvidia's financial performance has been equally impressive. The company reported $44.1 billion in revenue for the most recent quarter, a 69% increase from the previous year. It is on track to approach $170 billion in annual revenue for fiscal 2026, up from $130.5 billion in 2025. This growth has reshaped the broader stock market, with Nvidia now representing a significant portion of the S&P 500 index [1].

To put Nvidia's valuation into perspective, it now exceeds the combined market capitalization of all publicly listed companies in Canada and Mexico, and even surpasses the total value of all publicly traded firms in the United Kingdom. Analysts at Wedbush Securities predict that both Nvidia and Microsoft will reach the $4 trillion market cap milestone this summer, with the potential to hit $5 trillion within the next 18 months [1].

However, Nvidia faces challenges, including ongoing trade restrictions limiting the sale of its most advanced chips to China and rising competition from rivals developing custom AI hardware. The company's robust innovation pipeline and expansion into new markets such as autonomous vehicles and physical AI systems suggest that its influence in the tech world is likely to persist [1].

The rise of Nvidia and the AI sector has broader implications for the global economy. The company's value now exceeds three times the total market capitalization of the Spanish stock market and more than four times that of the Italian stock exchange. This shift in market dynamics reflects the growing importance of AI technology in shaping the future of various industries and economies worldwide [1].

In a related development, LG Electronics is in talks to supply a cooling solution for Nvidia's servers, eyeing the heat generated by the artificial intelligence (AI) industry as a new business opportunity. LG plans to expand its heating, ventilation and air conditioning (HVAC) business into AI data centers, leveraging its differentiated liquid-cooling technology to secure contracts with major tech companies [2].

Nvidia's phenomenal valuation is a testament to the growing significance of AI technology in the global economy. However, it remains to be seen whether this valuation is sustainable or if it is instead in a temporary bubble caused by demand temporarily exceeding supply. As of the time of writing, Nvidia's stock price was sitting at around $164, seeing its market cap dip back very marginally beneath $4T [3].

References:
[1] https://theoutpost.ai/news-story/nvidia-reclaims-top-spot-in-global-market-value-driven-by-ai-leadership-17295/
[2] https://koreajoongangdaily.joins.com/news/2025-07-08/business/industry/LG-Electronics-in-talks-with-Nvidia-to-supply-cooling-solutions-for-AI-servers/2348148
[3] https://9to5mac.com/2025/07/09/nvidia-beats-apple-to-a-4t-valuation-as-it-rides-ai-wave/