Technology

Nvidia reaches 4 trillion dollar mark – AI chip giant benefits from global demand boom

Nvidia surpasses $4 trillion market value for the first time – AI boom, U.S. tech demand, and Middle East deals drive the stock.

Eulerpool News Jul 11, 2025, 5:00 PM

With a price increase to as much as 164.42 USD, Nvidia temporarily exceeded the symbolic mark of 4 trillion USD in market capitalization on Wednesday. Even though the trading day ended with a price gain of 1.8% and a market value of 3.97 trillion USD, the record high underscored the dominance of the AI chip manufacturer in an overheated technology sector.

Since the beginning of May, the stock price has increased by more than 40% – buoyed by geopolitical relaxation signals from US President Trump towards China and a series of billion-dollar chip supply agreements in the Middle East. Nvidia once again overtook Apple, which was valued at $3.92 trillion at the end of 2024.

Nvidia particularly benefits from its quasi-monopoly position in GPUs for training generative AI models, especially ChatGPT from OpenAI. The demand for powerful graphics processors has exploded since the launch of ChatGPT in November 2022. Since then, Nvidia has quadrupled its market capitalization in less than two years: in 2023, the company surpassed the $1 and $2 trillion thresholds for the first time, and in 2024, it reached the $3 trillion mark.

In the past quarter, the group reported a revenue jump of 70% compared to the previous year. For the current fiscal year, analysts expect revenues of nearly 200 billion US dollars – an increase of 55%. The forecasted net profit is 105 billion dollars, with a gross margin of over 70%.

Despite export restrictions to China, optimism among investors remains unbroken. Hopeful projects are so-called "sovereign AI" initiatives in Europe and the Gulf region, as well as the ongoing demand from large US tech companies. Doubts about growth dynamics at the beginning of the year – for example, after the emergence of efficient competing models from China – have been largely dispelled by recent financial figures.

Strong revenue growth at startups like OpenAI and Anthropic also strengthens confidence in the sustainability of the AI boom. For example, OpenAI reported a doubling of Annual Recurring Revenue to $10 billion in May, with Anthropic estimated at around $4 billion.

The more AI, the better the margin," recently commented Nvidia CEO Jensen Huang. "What drives me is not too much, but too little AI.

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