Nvidia Surpasses $3.6 Trillion Milestone Amid AI Chip Boom and Market Optimism

Nvidia has once again made history by becoming the first company to surpass a market capitalization of $3.6 trillion, leading in the American stock market after the recent presidential election. This milestone, marked by Nvidia's unparalleled market value, underscores the company's dominance in the field of artificial intelligence chips.

The recent boost in Nvidia's stock, climbing 4.07% on Tuesday and an additional 2.25% on Wednesday, came on the heels of positive investor sentiment expecting potential policies of tax relief and regulatory easing by newly-elected President Trump. Investors' optimism was reflected in a broader rally within the tech sector, with the S&P 500 Technology Index rising over 4% in the same two-day span.

Nvidia's valuation at Thursday's closing reached $3.65 trillion, overtaking Apple's previous record of $3.57 trillion set on October 21. The company has thus reclaimed its standing as the most valuable globally, surpassing heavyweights like Apple and others in terms of market cap.

This leap places Nvidia ahead of the combined market values of established giants such as Eli Lilly, Walmart, JPMorgan Chase, Visa, UnitedHealth Group, and Netflix. This elevation reflects the significant gains Nvidia has witnessed since the beginning of the year, with its stock price tripling in 2024 alone.

The exceptional rise of Nvidia is largely attributable to its leadership in AI-driven technology markets, where competition remains intense among tech behemoths such as Microsoft and Alphabet. November alone has seen Nvidia's stock appreciate by 12% as anticipation builds around its upcoming earnings report slated for November 20, where analysts forecast a remarkable 80% year-over-year revenue growth to $329 billion.

As of Thursday, Apple's stocks rose by 2.1%, bringing its market value to $3.44 trillion, while Microsoft's shares increased 1.25%, pushing its valuation toward $3.16 trillion. These figures underline the ongoing fierce competition among the tech industry's top players to shape the future of AI infrastructure and technology.