Nvidia made headlines in early July 2025 when its stock price surged to an intraday high that pushed its market capitalization to $3.92 trillion – just surpassing Apple’s previous record of $3.915 trillion set in December 2024. Although Nvidia’s valuation dipped back to $3.89 trillion by market close, the brief milestone underscored the fervor around artificial intelligence (AI) and the critical role Nvidia plays in powering next-generation AI workloads.
On July 3, 2025, Nvidia’s shares climbed as much as 2.4% to $160.98 in morning trading, driving its market cap to $3.92 trillion – momentarily eclipsing Apple as the most valuable company in history.
By the end of the day, the stock settled at $159.60, leaving the market cap at $3.89 trillion, still within striking distance of the all-time high.
Several key factors fueled Nvidia’s record run:
- AI chip demand from enterprises racing to build and deploy large models
- Robust Q2 2025 earnings, led by data-center sales
- Broader market optimism after a stronger-than-expected U.S. jobs report
- Analyst upgrades forecasting $4 trillion–$5 trillion valuations on an AI spending wave
Comparisons and Market Impact
| Company | Market Cap at Peak | Position |
|---|---|---|
| Nvidia | $3.92 trillion | Briefly #1 global |
| Apple | $3.915 trillion | Former record-holder |
| Microsoft | $3.70 trillion | #2 as of July 2025 |
| Amazon | $1.85 trillion | #4 |
| Alphabet | $1.70 trillion | #5 |
These five tech giants now represent 28% of the S&P 500, highlighting market concentration around AI and cloud leaders.
Analyst Perspectives and Caveats
Despite enthusiasm, some experts urge caution:
- Comparisons to the dot-com bubble, warning of sudden pullbacks
- Nvidia’s valuation at 32× forward earnings—below its five-year average but high versus peers
Nvidia’s Evolution and Future Outlook
Key milestones:
- 2016: CUDA-powered Tesla GPUs for deep learning
- 2020: A100 Tensor Core GPU cements AI lead
- 2024–25: H100 and Blackwell chips drive blockbuster orders
Next up: robotics, autonomous vehicles and edge AI for continued growth.
