Nvidia's stock market value exceeded $4 trillion for the first time on July 10, 2025, solidifying its position as a central player in the AI technology race.

The chipmaker’s shares closed at $164.10, up 0.75%, reflecting robust investor confidence.

This milestone positions Nvidia ahead of tech giants Apple and Microsoft in market valuation.

The company briefly reached above $4 trillion on July 9 before settling at nearly $3.97 trillion the following day.

Its worth now surpasses the combined market value of all publicly listed companies in the United Kingdom.

Nvidia’s Processors Drive AI Race Among Tech Giants

Nvidia’s advanced processors are integral to the competition among major technology firms such as Microsoft, Amazon, Alphabet, and Meta Platforms.

These companies are investing heavily to build AI data centers and lead the emerging AI sector, with Nvidia’s chips at the core of their infrastructure.

The surge in demand for artificial intelligence technologies has fueled Nvidia’s rapid market growth.

The chipmaker first crossed a $1 trillion market value in June 2023 and has tripled that figure within approximately one year.

Competitive Landscape: Microsoft, Apple, and the AI Challenge

Microsoft stands as the second most valuable U.S. company, with a market capitalization of $3.73 trillion, although its shares fell 0.4% on the same trading day.

Apple’s market value has declined by 15% in 2025, currently valued at $3.17 trillion.

Investors express concern that Apple is lagging behind in incorporating AI into its products and services.

Despite Nvidia’s rapid stock price rise, its valuation remains about 33 times expected earnings, which is lower than its five-year average of 41, according to LSEG data. This suggests some investor caution amid ongoing market enthusiasm.

Trade Tensions Pose Risks to Nvidia’s Growth

Nvidia faces risks linked to escalating trade tensions between Washington and Beijing.

Export restrictions on Nvidia’s most powerful chips to China create uncertainty for future growth.

Swissquote Bank senior analyst Ipek Ozkardeskaya commented, "Trade tensions and tariffs are a risk, as is competition. Greater AI adoption could shift part of the demand toward cheaper alternatives".

PHOTO: NVIDIA

This article was created with AI assistance.