Nvidia briefly crossed the $4 trillion market capitalisation threshold, becoming the first company to reach that ceiling. This is a symbolic moment that confirms not only the company’s dominance in the semiconductor industry, but also the central role it plays in the artificial intelligence boom.
The rise in share values of more than 70% since the April low is due to a renewed wave of optimism – both about the future of AI and the improving geopolitical environment. Investors have ignored earlier concerns about competition from China and returned to technology ‘safe bets’. Among these, Nvidia is unrivalled today: its GPUs are the foundation of AI infrastructure, and customers such as Amazon, Google and Microsoft are building their models primarily on its solutions.
The latest quarterly results only fuel this trend. In the first quarter of 2025, the company’s revenue was $44.1 billion – up 69% from a year earlier. Expectations of 45 billion in the next quarter suggest that the pace of growth remains very strong, despite pressure from rivals such as AMD and rising investor expectations of spending efficiency at key customers.
For the market, it is also a lesson in scale. Nvidia already accounts for 7.3% of the total value of the S&P 500 index – more than Apple or Microsoft. What’s more, the company’s valuation exceeds the combined value of the UK, Canadian and Mexican stock exchanges.
It is worth bearing in mind, however, that despite the impressive results and share price growth, the company’s valuation has not yet completely detached itself from fundamentals. The P/E (price-to-earnings) ratio currently stands at 32 – below the three-year average, suggesting that some investors still see room for further growth.
Whether Nvidia will build a new technology ecosystem around itself on a par with Apple or Microsoft – we don’t know yet. But today it is the one dealing the cards in a world driven by artificial intelligence.
