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Nvidia Briefly Hits Historic $3.92 Trillion Market Value Amid AI Boom

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Nvidia (NVDA.O) briefly surged to a market capitalization of $3.92 trillion on Thursday, putting it on track to become the most valuable company ever, fueled by Wall Street’s strong optimism around artificial intelligence (AI).

Key Highlights

  • Nvidia’s shares rose as much as 2.4% to $160.98, surpassing Apple’s record closing market cap of $3.915 trillion set on December 26, 2024.

  • At the time of the latest update, shares were up 1.5% at $159.60, with a market cap just under Apple’s record, at $3.89 trillion.

  • Nvidia’s AI-focused chips are in high demand for training large AI models, driving significant growth for the Santa Clara-based company.

Market Context

  • Microsoft holds the second spot in market value at $3.7 trillion, with shares rising 1.7% to $499.56.

  • Apple sits third with a market cap of $3.19 trillion after a 0.8% increase.

  • Other tech giants racing to build AI data centers and dominate AI include Amazon, Meta, Alphabet, and Tesla, all fueling demand for Nvidia’s high-end processors.

Industry and Stock Insights

  • Joe Saluzzi, co-manager at Themis Trading, remarked on the incredible scale of market valuations, noting the AI-driven surge pushing companies into multi-trillion-dollar territory.

  • Nvidia’s valuation has nearly octupled in four years, from $500 billion in 2021 to almost $4 trillion.

  • The company’s value now exceeds the combined stock markets of Canada and Mexico and all publicly listed companies in the UK.

  • Nvidia trades at about 32 times analysts’ forward earnings—below its five-year average of 41—reflecting growing earnings estimates outpacing stock gains.

  • The stock has rebounded over 68% since early April lows caused by trade uncertainty.

Broader Impact

  • Nvidia’s growth underscores Wall Street’s massive bets on generative AI technologies, as its hardware forms the backbone of many AI systems.

  • Nvidia now makes up 7% of the S&P 500 index; combined with Microsoft, Apple, Amazon, and Alphabet, these five tech giants constitute 28% of the index.

  • Despite optimism, some experts like Kim Forrest of Bokeh Capital Partners caution that current AI models might not fully live up to the hype.

Company Background

  • Founded in 1993 by CEO Jensen Huang, Nvidia evolved from a niche graphics chipmaker to a leading AI technology company.

  • The company replaced Intel on the Dow Jones Industrial Average last November, marking a significant industry shift toward AI-focused semiconductor development.

Nvidia Regains Title as Most Valued Company in June on AI Optimism

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Nvidia reclaimed its position as the world’s most valuable company by market capitalization in June, reaching $3.86 trillion, driven by renewed investor optimism over its AI leadership and rising demand for its AI chips. This valuation was about 4.3% higher than Microsoft’s $3.69 trillion market cap at the end of June.

Despite this, Nvidia’s value remains below Apple’s record high of approximately $3.92 trillion set in December 2024. Apple ranked third with a market capitalization of $3.1 trillion at the end of June.

Other tech giants also saw significant gains: Meta Platforms rose 14% to $1.86 trillion, Broadcom increased 13.9% to $1.3 trillion, and Amazon grew 7% to $2.33 trillion. Meanwhile, Tesla’s market value dropped 8.3% to $1.02 trillion, affected by CEO Elon Musk’s public conflict with former President Donald Trump.

Daniel Ives, an analyst at Wedbush Securities, forecasted that Nvidia and Microsoft would both surpass $4 trillion market caps this summer, with a focus on reaching the $5 trillion mark over the next 18 months, signaling that the tech bull market is still in its early phase, led by the AI revolution.

Meta Launches ‘Superintelligence Labs’ to Revive AI Strategy Amid Fierce Competition

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Meta is restructuring its artificial intelligence efforts under a new division called Meta Superintelligence Labs, in a bid to regain lost ground in the global AI race. According to a source familiar with the matter, the new unit will be headed by Alexandr Wang, the former CEO of data-labeling firm Scale AI, who now takes on the role of Chief AI Officer at Meta.

The move comes as Meta grapples with senior staff exits and underwhelming reception to its latest open-source model Llama 4, developments that have left rivals such as Google, OpenAI, and China’s DeepSeek in stronger positions. Meta CEO Mark Zuckerberg reportedly hopes the new lab will fast-track progress toward artificial general intelligence (AGI)—a long-term ambition to build machines that can surpass human intelligence.

In recent weeks, Zuckerberg has taken personal control of AI recruiting, targeting high-profile names with aggressive offers, including attempts to lure OpenAI co-founder Ilya Sutskever’s new startup Safe Superintelligence (SSI). Offers reportedly reached $1 million per candidate via direct WhatsApp outreach.

The shakeup includes Meta’s $14.3 billion investment in Scale AI earlier this month. In addition to Wang, the Superintelligence Labs will include SSI co-founder and CEO Daniel Gross, while former GitHub CEO Nat Friedman will co-lead the division, focusing on applied AI products.

Meta has also attracted talent from top AI firms, hiring at least 11 new AI researchers from OpenAI, Anthropic, and Google DeepMind. Notable names include Jack Rae and Pei Sun (DeepMind), Jiahui Yu, Shuchao Bi, Shengjia Zhao, and Hongyu Ren (OpenAI), as well as Joel Pobar (Anthropic), who had previously spent over a decade at Meta.

Earlier this month, OpenAI’s CEO Sam Altman revealed that Meta had offered some of his staff $100 million bonuses to switch companies.

Despite the hiring blitz, some analysts are skeptical of Meta’s AGI strategy. They point to the company’s Reality Labs unit, which has burned over $60 billion since 2020 with few commercial wins, outside of Ray-Ban smart glasses and Quest headsets.

The broader tech sector is expected to spend $320 billion on AI development this year. Other firms are also making bold moves: Microsoft spent $650 million acquiring most of Inflection AI’s team, and Amazon has poached key personnel from Adept.

Still, the path to AGI remains uncertain. Meta’s own Chief AI Scientist Yann LeCun has publicly said that current methods are inadequate to reach true AGI. Meanwhile, SoftBank CEO Masayoshi Son believes the breakthrough is within 10 years.