Nvidia Set to Become World’s Most Valuable Company with $3.9 Trillion Market Cap

Nvidia Corp (NVDA.O) is on the verge of becoming the most valuable company in stock market history, with its market capitalisation touching $3.92 trillion during Thursday’s trading session. Shares of the AI chipmaker rose 2.2% to $160.60, surpassing Apple’s previous record of $3.915 trillion, set on December 26, 2024.

AI Boom Powers Nvidia’s Unprecedented Surge

The surge in Nvidia’s valuation is directly tied to Wall Street’s surging enthusiasm for artificial intelligence (AI). Nvidia’s advanced chips, essential for training large-scale generative AI models, are now in insatiable demand by global tech giants such as Microsoft, Amazon, Meta, Alphabet, and Tesla.

Nvidia has become the hardware backbone for the AI revolution, with its processors being used in data centers worldwide.

Nvidia Now Outpaces Microsoft and Apple

With its market cap at $3.92 trillion, Nvidia now leads Microsoft, which holds the second spot at $3.7 trillion, followed by Apple at $3.19 trillion. Microsoft shares rose 1.5% to $498.50, while Apple edged up 0.8% in the latest session.

This reshuffling of market leaders reflects the shifting investor focus from consumer tech to AI infrastructure.

From Gaming to Global AI Leader

Founded in 1993 by Jensen Huang, Nvidia originally made graphics cards for gaming. But over the last decade, it has transformed into the go-to platform for high-performance computing and AI training.

The company’s evolution is emblematic of how AI has reshaped the priorities of Silicon Valley and Wall Street alike. Huang’s vision has helped Nvidia lead this transformation from gaming hardware to AI’s central processing powerhouse.

Stock Value Surges 8X Since 2021

Nvidia’s rise is nothing short of meteoric. In 2021, the company was valued at just $500 billion. Since then, its market cap has grown nearly eightfold, making it more valuable than the entire stock markets of Canada and Mexico combined, according to LSEG data.

Nvidia also now surpasses the entire value of all publicly traded companies in the United Kingdom — a staggering feat for any corporation.

Nvidia's AI Chips Lead the Pack

The company’s newest AI chips have proved exceptionally effective at training large language models and other generative AI systems, giving it a major edge over competitors. Nvidia holds a nearly 7.4% weighting on the S&P 500 (.SPX), making it one of the index’s most influential stocks.

Valuation Still Seen as Reasonable by Analysts

Despite the massive rally, Nvidia's price-to-earnings (P/E) ratio remains relatively modest at 32 times forward earnings, below its 5-year average of 41, according to LSEG. This reflects the fact that earnings estimates are rising faster than the stock price, keeping its valuation attractive for many investors.

Market Recovery Boosted by Trade Optimism

Nvidia’s stock is up over 68% since April 4, when markets dipped in response to Donald Trump’s global tariff threats. Investor optimism has returned, driven by expectations that new trade deals will soften the impact of potential tariffs.

The company’s ability to rebound sharply also highlights its resilience in a volatile macro environment.

AI "Poster Child" of Wall Street

Nvidia has become the symbol of Wall Street’s faith in AI. Joe Saluzzi, co-manager of trading at Themis Trading, remarked, “When the first company crossed a trillion dollars, it was amazing. Now we’re talking four trillion — it’s just incredible.”

This reflects the massive capital flowing into AI infrastructure, where Nvidia’s role is pivotal.

From Intel to the Dow, Nvidia Takes the Spotlight

In November 2024, Nvidia replaced Intel in the Dow Jones Industrial Average, highlighting its central role in the new era of semiconductors. This marked a broader industry shift toward AI-oriented hardware development, moving away from traditional PC chip dominance.

A Temporary Setback in Early 2025

Earlier in 2025, investor confidence wavered when Chinese startup DeepSeek launched a low-cost AI model outperforming many Western alternatives. This briefly triggered a global selloff amid fears of reduced spending on premium AI chips.

However, Nvidia's superior hardware performance and innovation pipeline quickly restored market confidence.

Conclusion: Nvidia Redefines Market Leadership in the AI Era

Nvidia’s rise to a $3.92 trillion market cap is more than a milestone — it marks a shift in global economic priorities. As AI reshapes technology, finance, and industry, Nvidia stands at the forefront, powered by a decade of innovation, execution, and visionary leadership.

With demand for AI infrastructure showing no signs of slowing, Nvidia may not just be the most valuable company in history, but also the foundation of the AI-driven economy of the future.