On Wednesday, chip company Nvidia became the first company in the world to reach a market value of $4 trillion (€3.4 trillion). Shares rose 2.5 percent to a record high of $164, driven by continued demand for AI technology.
The company accounts for 7.3 percent of the value of the S&P 500 index, which is the highest position. Apple and Microsoft represent 7 and 6 percent of the index, respectively. Nvidia is now worth more than the combined value of the Canadian and Mexican stock markets.
Nvidia first reached a market value of $1 trillion in June 2023. The company managed to triple this value in about a year, which is faster than tech giants Apple and Microsoft. Both companies took longer to bring their market value from $1 trillion to $3 trillion.
Microsoft remains the second-largest US company with a market value of $3.75 trillion. Its shares rose 1.3 percent to $503 during the same trading session.
Recovery after market fluctuations
The recent stock rally comes after a disappointing start to the year. In January, DeepSeek’s Chinese AI model caused turmoil on the stock markets. The cheap alternative made investors doubt the value of AI-related stocks.
Nvidia recovered from the blow and rose about 74 percent since its low in April. At the time, the markets were shaken by President Donald Trump’s tariff measures.
In the first quarter, Nvidia reported revenue of $44.1 billion, a 69 percent increase from the same period a year earlier. Earnings per share were 81 cents.
For the second quarter, the company expects revenue of $45 billion, plus or minus 2 percent. The results will be presented on August 27.