Nvidia is close to becoming the most valuable company in the world, with its market value reaching around $3.92 trillion. The company’s stock has surged at light speed over the past few years, driven by high demand for its advanced AI chips, fundamental to some of the most advanced AI companies globally. Wall Street analysts have been steadily raising their price targets for the company’s stock, with some predicting it could reach as high as $250 per share. The stock has gained more than 70% since April 2025 alone, reports Reuters.
The company’s growth has been especially strong over the last two years. Since 2021, the company’s market value has increased by more than 8 times. This growth is largely due to the increasing use of AI in everything from search engines to productivity software and robotics. Nvidia’s advanced graphics processing units (GPUs) are used to train and run AI systems, including large language models, chatbots, and autonomous technologies. Notably, major tech giants like Microsoft, Amazon, Google, and Meta depend heavily on Nvidia’s hardware to power their artificial intelligence operations.
On July 3, Nvidia’s stock was trading at $160.60. This gave the company a market value of $3.92 trillion, putting it ahead of Apple’s previous record of $3.915 trillion set on December 2024. With this, Nvidia is now on track to become the most valuable company in history. Microsoft is currently in second place with a market value of $3.7 trillion, and Apple is in third at $3.19 trillion.
The overall market boost has also helped Nvidia’s rise. Strong US job numbers and a stable interest rate outlook have improved investor confidence, leading major indexes like the S&P 500 and Nasdaq to hit record highs. And Nvidia now makes up about 7.4% of the S&P 500 alone (clearly a very rare level of influence for a single company). Meanwhile, in terms of revenue, the company reported $44.06 billion for Q1 FY26 (up 69% from a year earlier), mainly driven by a 73% jump in its data center business to $39.1 billion.
Importantly, while Nvidia is about to become one of the largest companies in the world, some analysts still consider its valuation to be reasonable. The company’s price-to-earnings ratio is currently around 30, which is slightly below its five-year average of 41. This suggests its current growth is supported by real profits and not just market hype.
However, despite its success, the company has faced challenges, particularly from the US government restrictions on selling advanced chips to China. These limits have reduced Nvidia’s access to one of its largest international markets and could result in billions of dollars in lost sales. Even earlier, the Jensen Huang-led company itself had projected a $5.5 billion revenue loss for Q1. Also, for the next quarter, it expects the impact of export restrictions to continue, estimating a loss of about $8 billion.
