The market value of AI (Artificial Intelligence) chip leader Nvidia has broken through unprecedented four trillion dollars.
On July 9th, local time, Nvidia’s (Nasdaq: NVDA) stock price surged over 2.5% in the morning session, reaching about $164 per share, becoming the first company in the world to reach a market value of four trillion dollars. Since its low point in April this year, Nvidia’s stock price has risen nearly 90%.
Previously, Apple set a record high of $3.915 trillion in market value at the end of 2024. However, after that, due to its average performance in AI and impacted by tariffs, Apple’s value continued to decline. In contrast, Nvidia’s company market value soared during the AI boom, growing from around $500 billion in 2021 to an astonishing four trillion dollars.
Joe Saluzzi, a joint trading manager at Themis Trading, said, “It’s incredible that a company’s market value can break through four trillion dollars. It tells us that AI spending is currently very hot, with every investor chasing it.”
Recently, the US government relaxed some chip export restrictions, potentially benefiting Nvidia, further stimulating market enthusiasm. According to reports, on July 3rd, local time, Siemens announced that the US Department of Commerce had notified three global leading chip design software suppliers—Newark Technology, Cadence, and Siemens—that the previous requirement for them to apply for government permission for their operations in China has been revoked.
In May this year, Nvidia CEO Jensen Huang pointed out that due to the US government banning the export of Nvidia’s H20 chip to China, the company not only lost $5.5 billion due to inventory write-offs but also had to give up sales revenue of $15 billion in the Chinese market.
Institutions have also raised Nvidia’s target price.
For example, Mizuho Securities’ analyst Vijay Rakesh raised NVIDIA’s target price from $170 to $185: “We see that Rubin (NVIDIA’s next-generation AI chip) will be launched as planned, while NVIDIA is developing new accelerators in China, although shipments have not yet occurred.”
Regarding NVIDIA’s prospects, most analysts remain optimistic. Dan Ives, an analyst at investment bank Wedbush, said he expects NVIDIA’s market value to reach $4 trillion this summer and could reach $5 trillion within the next 18 months.
Ives wrote in his report: “We believe that the performance of technology stocks in the second half of this year will be very strong… Our bullish outlook is based on the fact that over the next three years, corporate and government spending around AI technology and related use cases will reach $2 trillion, and investors still underestimate the wave of growth that these expenditures will bring.”
However, there are also voices of pessimism about NVIDIA and even the global AI boom. For example, Jim Chanos, a well-known short seller on Wall Street, believes that the entire ecosystem around the AI boom reminds people of the dot-com bubble of the early 21st century.
Chanos stated: “(The AI boom) is a riskier source of revenue, and once the market pulls back, companies are likely to reduce capital expenditures, leading to projects being shelved. If this happens, it will immediately become evident from disappointing revenue and earnings guidance.” He emphasized that although the market “hasn’t reached this point yet,” many people have underestimated such risks.