Nvidia (NVDA) Officially Hits $4 Trillion Market Cap

Business Insider

2 days ago

Nvidia (NVDA) has become the first company ever to achieve a $4 trillion market capitalization.
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The chipmaker's stock rose more than 2% on July 9 to hit the $4 trillion milestone. The company's share price has boomed since the mid-April stock market bottom as investors pile back into the artificial intelligence (AI) trade. Nvidia is now the world's most valuable public company, surpassing Microsoft (MSFT) and Apple (AAPL), which each have a $3 trillion market cap.
Silicon Valley-based Nvidia, which was founded in 1993, only achieved a $1 trillion market capitalization in June 2023. It surpassed the $2 trillion mark in February 2024, and hit $3 trillion in June of this year. The rapid growth of the company's market value showcases the stock's meteoric growth.
Chip Demand
NVDA stock has marched steadily higher as demand for its AI hardware and microchips power its financial results. The company is the world leader in the market for graphics processing units (GPUs) that power the large language models behind AI models and applications.
Most recently, Nvidia reported 63% year-over-year profit growth for the fourth quarter of 2024 as sales of its microchips and processors accelerate. While the company's stock dipped at the start of the year and fell below $100 a share during the April tariff selloff, it has since risen 73% from a low reached on April 4. The stock is currently trading at an all-time high on a split-adjusted basis.
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 35 Buy, four Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $175.97 implies 11.20% upside from current levels.