Nvidia Breaks $4 Trillion Barrier, Tops Apple To Become Most Valuable Company Ever

Nvidia Inc.(NVDA) jumped to an all-time high of $164.32 during morning trade on Wednesday to become the most valuable company in history as its market capitalization crossed the $4 trillion mark for the first time. 

The previous record was held by Apple (AAPL), which recorded an all-time high closing value of $3.91 trillion in December last year. 

At the time of writing, Nvidia stock had pared some of its gains, still trading 1.8% higher. On Stocktwits, retail sentiment around Nvidia improved to ‘bullish’ territory from ‘normal’ a day ago.

A CNBC report stated that the climb beyond $4 trillion underscores Nvidia’s dominance in the AI hardware sector, fueled by investors snapping up shares of the firm that supplies much of the infrastructure behind generative artificial intelligence. 

The chipmaker achieved $2 trillion in valuation in February 2024 and crossed $3 trillion in June. 

Nvidia already holds the top spot as the world’s most valuable company, boasting a market cap of $3.98 trillion. It leads its major counterparts, outpacing Microsoft Corp. (MSFT) at $3.74 trillion and Apple at $3.1 trillion.

Notably, Microsoft remains one of Nvidia’s largest clients, maintaining a close strategic relationship, according to the report.

Recently, CEO Jensen Huang has also shown increasing optimism about the prospects of quantum computing, suggesting that these next-generation systems may begin solving real-world challenges sooner than previously expected, which in turn is likely to drive growing demand for the company’s chips.

Over the past five years, Nvidia stock has exploded more than 15-fold. It continues to show strength, up over 21% year-to-date, and over 23% in the last 12 months.

The rally persists despite export restrictions on its H20 chip, specifically designed for China. Nvidia disclosed that these constraints could reduce its potential sales by as much as $8 billion. 

Also See: Emirates Embraces Crypto Payments As Dubai Courts Blockchain Firms

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