Joe Saluzzi, head of trading at Themis Trading, US securities investment firm, said: "Nvidia's market value exceeded one trillion US dollars, and now it has climbed to $4 trillion, which shows that the AI investment boom is sweeping the world."
Nvidia's market value climbed to US$3920 billion (about S$5 trillion) on Thursday (July 3), surpassing Apple's previous record and becoming the world's highest market value company is just around the corner.
The US market expects the White House to ease tariff policies through an agreement, and investors' confidence in the AI track will be quickly restored. Nvidia's weight in the S&P 500 index has reached 7.4%, and its market value inflation reflects Wall Street's huge bet on the popularization of generative AI technology.
Powered by strong demand for artificial intelligence (AI) chips, the chip design company's stock price rose 2.4% intraday to $160.98.
In the past four years, Nvidia's market value has soared nearly eight times from US$500 billion in 2021 to its current level, with a scale exceeding the combined Canadian and Mexican stock markets and higher than the total market value of all listed companies in the UK.
According to Reuters, Nvidia's latest chips have performed outstandingly in training large AI models, attracting strong global demand for its high-end processors. Microsoft ranked second with a market value of $3700 billion, while Apple ranked third with a market value of $3190 billion.
According to data from market analysis company LSEG, Nvidia's current market value is 32 times the expected profit in the next 12 months, lower than the average (41 times) in the past five years. The relatively modest P/E valuation reflects a steady increase in earnings expectations and the growth rate has exceeded the growth of Nvidia's stock price.
At the beginning of this year, China's DeepSeek launched a low-priced and efficient AI model, which caused concerns about the cooling of US AI investment, causing Nvidia's stock price to be temporarily under pressure. Previously, the market had also fallen into temporary turmoil due to Trump's announcement of global tariffs. But since the stock price hit a temporary bottom in early April, Nvidia's stock price has rebounded by more than 68%.
Tech giants such as Microsoft, Amazon, Meta, Alphabet, and Tesla are competing for the dominance of AI data centers and are increasing their investment in AI infrastructure. Nvidia has become a beneficiary of this wave.