Nvidia Surpasses $4 Trillion Valuation, Drives S&P and Nasdaq to All-Time Highs

Nvidia shares reached a new record high, driving the S&P 500 and Nasdaq composite to all-time highs. The AI chip-maker closed at a valuation of over $4 trillion, making it the first company to reach this milestone.

Nvidia shares reached a new record high on July 10, 2025, closing at a valuation of over $4 trillion. This milestone, the first of its kind for any listed company, propelled the S&P 500 and Nasdaq composite to all-time highs. The achievement underscores Nvidia's dominance in the AI chip market and its significant impact on the broader technology landscape.

The company's share price settled near $164, capping a run that has lifted the stock 74 percent since April’s low and around 22 percent since January. This impressive performance has been driven by strong demand for Nvidia's AI chips from cloud providers and automakers, among other industries. The company's market leadership in AI chips, with around 80 percent of high-end AI GPU supply, has contributed to its rapid growth.

The surge in Nvidia's valuation has significantly increased the wealth of co-founder and CEO Jensen Huang. As of the New York closing bell on July 10, Bloomberg pegged Huang's net worth at $143 billion, up from about $20 billion in early 2022. This leap, which happened in stages, highlights the substantial financial gains that can be realized from a company's success in the technology sector [1].

However, analysts are closely watching Nvidia's valuation and future earnings, as several factors could potentially slow the company's growth. Export curbs, particularly the U.S. ban on top-tier chips from shipping to China, could limit Nvidia's market reach. Additionally, competition from other chipmakers, such as AMD and Intel, may erode Nvidia's market share, especially in inference workloads. Lastly, the high valuation of Nvidia's stock, currently at about 40 times forward earnings, leaves little room for an earnings miss, which could significantly impact the company's valuation and Huang's wealth [1].

Despite these challenges, Nvidia's strong position in the AI chip market and its ability to capitalize on the growing demand for AI technologies make it a key player in the tech industry. The company's dominance in this critical sector is expected to continue driving its growth and valuation in the coming years.

References:
[1] https://timesofindia.indiatimes.com/technology/tech-news/nvidia-ceo-jensen-huangs-net-worth-soars-1-billion-as-the-chipmaker-joins-the-4-trillion-club/articleshow/122377958.cms