Nvidia crossed the $5 trillion market value mark on April 25 after its shares increased 4.3% to close at $208.27, as investors returned to AI stocks. During the day, its valuation briefly reached about $5.12 trillion, its highest level since October. The surge also strengthened its lead over companies like Apple.
The company’s valuation surge is closely tied to its dominance in AI hardware. Its advanced graphics processing units (GPUs), particularly those used in data centers, have become essential for training and deploying large-scale AI models. Major technology firms like Microsoft, Amazon, and Google continue to invest aggressively in AI infrastructure, driving sustained demand for Nvidia’s chips. These companies are collectively spending tens of billions of dollars annually on expanding their data center capabilities, much of which relies on Nvidia’s hardware and software ecosystem.
Financially, in its most recent quarterly report – Q4 FY2026, Nvidia posted record revenue of about $68.1 billion, up 73% year-on-year, while full-year revenue reached $215.9 billion, a 65% annual increase. Net income also surged to about $43 billion in a single quarter, with profit growth close to doubling and margins staying exceptionally high at around 75%.
The most critical driver behind these results is Nvidia’s data center business, which has effectively become the backbone of the company. In the latest quarter alone, data center revenue stood at over $62 billion, contributing the vast majority of total sales, while full-year data center revenue reached around $190-$197 billion, growing almost 70% year-on-year.
Estimates suggest that Nvidia’s stock has surged more than 14 times since the end of 2022. This strong momentum has also spread across the semiconductor sector, with Intel witnessing a sharp surge of over 20% in a single trading session—its biggest gain in decades—while AMD has also recorded significant jumps, including double-digit rises in a single day.
However, despite all such strong growth and optimism, there are concerns that Nvidia’s valuation shows extremely high expectations. Questions remain over whether the pace of AI-related spending can be sustained over the long term, particularly if economic conditions tighten or major customers reduce their investments. Additionally, geopolitical factors like export restrictions on advanced chips, along with rising competition in the semiconductor space, could influence the company’s future growth trajectory.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
