Nvidia's market value has surpassed $4 trillion, solidifying its position as a leader in artificial intelligence and chip technology.
NVIDIA: On July 11, 2025, a new milestone was set in the tech world when its market capitalization exceeded $4 trillion. This is a significant achievement not only for the company but also for the entire semiconductor and Artificial Intelligence (AI) industry. Nvidia shares closed at $164.10, up 0.75%, bringing its total market value to $4.004 trillion. This accomplishment comes at a time of rapidly increasing demand for AI technology worldwide.
Nvidia Becomes the Biggest Beneficiary of AI Technology
The primary reason for Nvidia's ascent is its dominance in the AI infrastructure. The GPUs (Graphics Processing Units) created by the company are now the foundation of every system where cutting-edge experiments like generative AI, machine learning, and deep learning are being conducted.
Nvidia's Key Customers:
- Microsoft (Azure Cloud)
- Amazon (AWS)
- Google (Alphabet)
- Meta Platforms
- AI startups like OpenAI, Anthropic
The AI capabilities of all these tech giants depend on Nvidia's chips.
Tremendous Surge in Market Value
Nvidia first achieved a market value of $1 trillion in June 2023, and in just one year, it has soared to over $4 trillion. It has become the first chip manufacturer in the world to grow so rapidly. This growth is fueled by the increasing demand for AI technology and the use of Nvidia's chips by major companies like Microsoft, Google, and Amazon. It is clear that Nvidia is poised to become an even bigger name in the technology world in the future.
Surpassing Apple and Microsoft
Until now, Apple and Microsoft have held sway among the largest companies in America. But Nvidia has surpassed both of them and established its dominance in the technology industry.
Market Cap Comparison (July 2025):
- Nvidia: $4.004 trillion
- Microsoft: $3.73 trillion
- Apple: $3.17 trillion
Apple shares have seen a 15% decline so far this year, reflecting investor concerns that the company is lagging behind in the AI race.
Global Challenges Also Became Obstacles
Although Nvidia's success has been remarkable, it is also facing some global challenges. Due to trade tensions between the US and China, Nvidia is facing restrictions on the export of its most powerful chips to China. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said: 'Tariffs and trade wars are as big a risk as competition. If AI technology moves towards cheaper alternatives, Nvidia's sales could be affected.'
Is Nvidia's Stock Overvalued?
According to LSEG, Nvidia's stock is valued at 33 times its estimated earnings, which is less than its five-year average of 41 times. This means that despite rapid growth, the stock is not considered overly expensive, leaving opportunities for investors.
Nvidia's Future: Not Just Chips, but Control of the Entire AI Ecosystem
Nvidia is now positioning itself not just as a chip manufacturer but as the leader of the entire AI ecosystem.
The company has recently:
- Launched new DGX superchips,
- Created AI supercomputing systems,
- Entered healthcare, robotics, autonomous vehicles, and defense technology.
It is clear that Nvidia's expansion will not be limited to just chips.
