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Reuters
09-07-2025
- Business
- Reuters
Nvidia's $4 trillion milestone caps rise of stock market behemoth
NEW YORK, July 9 (Reuters) - The stunning rise of Nvidia Corp (NVDA.O), opens new tab to become the first publicly traded company valued at $4 trillion underscores the massive importance to the stock market of the AI chipmaker and the technology sector. Reaching the lofty milestone caps a massive run for Nvidia's stock price, which has soared some 1,350% since October 2022. This year, the chipmaker's shares are up about 22% against a 6% rise for the S&P 500 (.SPX), opens new tab. The company's market value hit $4 trillion in morning trading on Wednesday, about 13 months after it had first reached the $3 trillion milestone. Nvidia's stock surge has given it significant weight in key equity indexes and ETFs that are more heavily influenced by companies with the biggest market values. At around 7.5%, Nvidia has the biggest weight in the S&P 500, which is widely viewed by investors as the benchmark for the U.S. stock market. The stock has an even greater presence in more tech-heavy measures, such as the popular Invesco QQQ Trust ETF (QQQ.O), opens new tab and the Philadelphia SE Semiconductor Index (.SOX), opens new tab. Its influence is less significant in the Dow Jones Industrial Average (.DJI), opens new tab, which is weighted by stock prices as opposed to market values. Nvidia may soon have company in the exclusive $4 trillion club. Microsoft's (MSFT.O), opens new tab market value was hovering around $3.7 trillion on Wednesday. Apple (AAPL.O), opens new tab ranks third at about $3.1 trillion. Their massive market values also illustrate the hefty influence of tech and tech-related companies. The top seven S&P 500 weights, which also include (AMZN.O), opens new tab, Alphabet (GOOGL.O), opens new tab, Meta Platforms (META.O), opens new tab and Broadcom (AVGO.O), opens new tab, comprise about one-third of the index. Nvidia's gains also point to the increasing presence of the overall technology sector (.SPLRCT), opens new tab, which is by far the largest sector in the S&P 500. The tech sector's market value has grown to one-third of S&P 500 market value, nearly reaching the proportion that the sector hit during the height of the dot com bubble in 2000. Other tech stocks that have performed well in 2025 include Microsoft, up about 19% this year, Oracle (ORCL.N), opens new tab, up 40%, and Palantir (PLTR.O), opens new tab, up 88%.
Yahoo
23-06-2025
- Business
- Yahoo
Warren Buffett's Berkshire Hathaway Now Pays 5% of All Corporate Income Taxes in America
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.A) (BRK.B), highlighted a striking corporate evolution in his 2024 shareholder letter. The conglomerate's journey — from paying no federal income tax in 1965 due to company woes, to delivering the largest corporate tax payment in U.S. history in 2024 — exemplifies its extraordinary financial turnaround under Buffett's leadership. In fact, Berkshire's $26.8 billion contribution represented approximately 5% of all corporate income taxes collected by the U.S. government last year. Buffett's authority on fiscal responsibility stems from his 60-year stewardship of Berkshire, during which he transformed a failing textile company into a trillion-dollar conglomerate. When Buffett took control in 1965, Berkshire was "headed for the ash can," failing to generate profits or pay taxes for a decade — a situation Buffett described as "an embarrassment" for a once-venerable industrial firm. His late business partner, Charlie Munger, immediately recognized the acquisition as a strategic error, but Buffett pivoted Berkshire toward insurance, utilities, and value-driven investments. This shift enabled the company to build massive taxable income through relentless reinvestment rather than dividends. Since 1965, Berkshire has paid over $101 billion in cumulative federal taxes, with shareholders receiving only one nominal dividend in 1967. Robotaxis, Powell and Other Key Things to Watch this Week The 7 Signs Your Stock Is A Buyout Target Looking to Gamble on Hard-Hit Solar Stocks? This Is the Top-Rated Ticker Now. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The scale of Berkshire's 2024 tax payment — surpassing even tech giants with trillion-dollar valuations — reflects Buffett's long-term capital allocation philosophy. He attributes this capacity to shareholders' "endorsement of continuous reinvestment" over six decades, which compounded returns and expanded the tax base. Buffett emphasized that this reinvestment strategy allowed Berkshire to "build its taxable income" organically, contrasting with companies prioritizing short-term shareholder payouts. Buffett himself tried to put the sum of money into context. 'Huge numbers can be hard to visualize. Let me recast the $26.8 billion that we paid last year. If Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend,' Buffett said. He continued, 'Indeed, it would be well into January before the Treasury would tell us that we could take a short breather, get some sleep, and prepare for our 2025 tax payments.' Berkshire's tax milestone underscores a broader principle in Buffett's leadership: patient capital compounding, even through early setbacks, can yield transformative societal contributions. The company's journey from tax irrelevance to becoming America's largest corporate taxpayer exemplifies how disciplined reinvestment fuels both corporate resilience and national fiscal strength. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
