Nvidia shares jumped on Wednesday to make it the first public company in the world to reach $4 trillion in market valuation, solidifying its position as one of Wall Street's most-favoured stocks.
Shares of the leading chip company rose as much as 2.5 percent to an all-time high of $164, benefiting from the ongoing surge in demand for artificial intelligence technology to transform businesses. At the beginning of 2023, Nvidia shares were around $14 each.
The poster child of the AI boom, Nvidia has grown into largest company on Wall Street, surpassing Microsoft, Apple, Amazon and Google — it is now worth over $4 trillion — and the stock’s movement carries more weight on the S&P 500 and other indexes than every company except Apple. Two years ago, Nvidia’s market value was below $600 billion.
Nvidia reported nearly $19 billion in profits in its most recent quarter.
The stock's recent rally comes despite a sluggish start to the year, when the emergence of a Chinese discount artificial intelligence model developed by DeepSeek shook confidence in stocks linked to the sector.
Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently, with the latest coming last week. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the U.S. economy from tariffs and other policies of President Donald Trump.
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(With agency inputs)
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