NVIDIA Shatters Records with $4 Trillion Market Cap Amid AI Surge

NVIDIA Corporation has once again hit a historical high, with its market capitalization closing above $4 trillion, marking it as the first U.S. company to achieve this milestone in market value within a single day of soaring past the $4 trillion intraday valuation.

At the close of trading on Thursday, NVIDIA's stock rose by 0.75%, reaching $164.10 per share, thus driving its market cap to an impressive $4.004 trillion. Meanwhile, the S&P 500 Index climbed 0.27%, and the Nasdaq Composite Index edged up by 0.09%, yet NVIDIA's market performance outpaced them both.

The scale of NVIDIA's valuation is unprecedented. According to Peter Boockvar, Chief Investment Officer at Bleakley Financial Group, in his Substack publication on Thursday, a $4 trillion market cap is approximately 3.6% of the global Gross Domestic Product (GDP). For comparison, Cisco Systems' peak valuation during the 2000 dot-com bubble was $550 billion, which represented just 1.6% of the global GDP at the time.

Boockvar noted that his analysis doesn't express a bullish or bearish stance on NVIDIA stock, but rather highlights the extraordinary pace of its growth compared to historical data.

Over the past three months, NVIDIA's stock has surged more than 50%, emerging as a leader in the market's rebound following the April "Liberation Day" tariff impacts. Analysts widely believe that the explosive demand for AI computing power will continue to fuel NVIDIA's earnings in the coming quarters.

Furthermore, the launch of the AI chatbot Grok 4 by Tesla CEO Elon Musk's AI venture, xAI, on Thursday, underscores the rapid development and intense competition within the AI industry. NVIDIA serves as the backbone power provider for numerous AI startups and tech giants, with its high-performance GPUs (Graphics Processing Units) becoming the de facto "standard" for AI training needs.

Despite NVIDIA's stellar performance, the broader semiconductor sector showed mixed results on Thursday. Advanced Micro Devices (AMD) sees an upwards trend with a 4.2% increase, extending its recent strong performance, while Broadcom Inc. (AVGO) faced a slight decline of 0.9%.