NVIDIA just became the first $4 trillion stock
|The stock price has surged 70% since April.
NVIDIA (NASDAQ: NVDA), the AI-enabled chip maker, just did something that no other company has done, reach $4 trillion in market capitalization.
NVIDIA stock rose about 2% on Wednesday, July 9, which pushed its market cap over the $4 trillion mark. The market cap of a company is the total value of its outstanding shares.
“The Godfather of AI Jensen and Nvidia hit $4 trillion market cap. AI Revolution and huge historical moment for US Tech sector,” Wedbush analyst Dan Ives posted on X on Wednesday.
Jensen is in reference to NVIDIA CEO Jensen Huang.
For some perspective on how fast NVIDIA has grown in recent years, five years ago, in July 2020, NVIDIA’s market cap was about $323 billion. It was nowhere near the top of the list, which was occupied by Apple (NASDAQ: AAPL), with a market cap of $1.7 trillion.
Crazy growth fueled $4T milestone
NVIDIA has become synonymous with the AI boom, as its stock gained a staggering 239% in 2023 and 171% in 2024. This year, after a wobbly start, it is up some 19% YTD.
Back in April, NVIDIA dipped to $96 per share, but since then it has surged almost 70% to around $163 per share.
To illustrate the rapid growth in just the past two years, NVIDIA didn’t reach the $1 trillion market cap level until June of 2023 – just two years ago. Just over eight months later in February of 2024 it scaled the $2 trillion market cap peak. Then, only four months later in June of 2024 it surpassed $3 trillion in market cap.
Currently, there are five companies with market caps of over $2 trillion, led by NVIDIA at $4 trillion, followed by Microsoft (NASDAQ: MSFT) at $3.7 trillion, Apple at $3.2 trillion, Amazon (NASDAQ: AMZN) at $2.4 trillion, and Alphabet (NASDAQ: GOOG) at $2.1 trillion.
Even with its huge gains in the past two months, analysts see more growth in the near-term for NVIDIA. It has a $175 median price target, which suggests about 8% growth over the next 12 months.
Can a $5 trillion market cap be that far away?
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