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Nvidia Stock Briefly Surges Past $4 Trillion Market Cap

Aditya Raghunath
Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Jul 10, 2025
Nvidia Stock Briefly Surges Past $4 Trillion Market Cap

@Yakobchuk from Getty Images via Canva

Key Stats for Nvidia Stock

  • Price Change for NVDA stock: 1.80%
  • Current Share Price: $162.88
  • 52-Week High: $164.42
  • Nvidia Stock Price Target: $175.14

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What Happened?

NVIDIA (NVDA) stock surged to an all-time high of $164.42 on Wednesday, briefly pushing the chipmaker’s market capitalization past the historic $4 trillion milestone, making it the first company ever to reach this valuation during trading.

The semiconductor giant closed up 1.80%, ending the day with a market cap of $3.97 trillion, cementing its position as the world’s most valuable company ahead of Microsoft and Apple.

The rally comes despite ongoing geopolitical tensions and chip export restrictions that have hampered sales to China.

NVIDIA stock has rebounded 74% from its April lows when tariff concerns weighed on global markets.

Recent optimism around trade negotiations and the company’s strong positioning in the AI infrastructure buildout has driven renewed investor confidence.

NVDA Stock Valuation Model (TIKR)

The milestone reflects Wall Street’s continued belief in NVIDIA’s dominance of the artificial intelligence hardware market, with its Blackwell architecture driving unprecedented demand for AI inference and training workloads.

Nvidia reported $44.1 billion in Q1 revenue, a 69% year-over-year increase, with data center sales of $39 billion growing 73% annually.

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What the Market Is Telling Us About NVDA Stock

The $4 trillion valuation breakthrough signals investors’ conviction that NVIDIA’s AI leadership position will continue generating massive returns despite increased competition.

The forward P/E ratio of 33x for NVDA stock remains below its three-year average of 38x, suggesting the valuation isn’t stretched relative to growth expectations.

Market participants are betting on multiple AI growth waves beyond traditional cloud providers, including sovereign AI infrastructure projects and enterprise adoption.

NVIDIA management highlighted nearly 100 AI factories currently under construction globally, representing tens of gigawatts of future compute demand.

The company’s full-stack platform approach, combining GPUs, networking, and software, creates powerful competitive moats that justify premium valuations.

However, NVDA faces headwinds from China export restrictions, with management estimating an $8 billion revenue impact in Q2 from the H20 chip ban.

Despite these challenges, analysts maintain a bullish outlook on NVDA stock, with average price targets around $200, implying further upside potential.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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