(CTN News) – Nvidia became the world’s first publicly traded company with a market value of more than $4 trillion on Wednesday, which is an important turning point.

This was a really amazing achievement. As a result, it became one of the most well-known companies on Wall Street.

Its main chip designer’s stock hit its greatest level ever, hitting $164, the highest level ever recorded. Up to 2.5 percent had been added to the stock.

AI-based solutions have seen a continuous increase in demand.

The sharp rise in Nvidia’s market capitalization indicates that Wall Street believes artificial intelligence will advance significantly over the next several years. This technological innovation is based on the company’s high-performance processors.

DeepSeek’s distribution of a Chinese discount AI model, which eroded investor confidence in industry-related shares, caused the recent surge in stock prices.

Following a poor start to the year, the stock experienced a decline.

The company began by manufacturing gaming chips, then moved on to manufacturing chips for cryptocurrency mining, and now it is manufacturing chips for artificial intelligence computing power, as stated by Art Hogan, who is the chief market analyst at B. Riley Wealth.

According to Hogan, the company’s beginnings can be traced back to the production of gambling chips. “It is a clear early winner in the field of artificial intelligence and is still moving forward.” In June 2023, Nvidia became the first corporation to attain a $1 trillion market valuation, making history.

With a market value of over three trillion dollars, it became the fastest-growing firm in the United States after doubling its worth in just one year.

Microsoft is currently the second-largest firm in the United States, with a market worth of $3.75 trillion. Its shares had risen 1.3% to $503 per share at the time of the most recent review.

Since April, when it hit its lowest point amidst the worldwide market upheaval caused by tariffs imposed by U.S. President Donald Trump, Nvidia’s value has increased by more than 74%. This recovery has occurred since the company’s lowest point.

Stock prices have risen recently due in part to people’s confidence about the possibility of an accord between the US and its trading partners. For the first time in history, the S&P 500 index hit a new all-time high.

With an astounding 7.3% of the total weight, Nvidia is the most valuable stock in the S&P 500 index. Two other major technology companies, Apple and Microsoft, account for about seven percent and six percent of the total, respectively.

According to figures produced by LSEG, the company’s value exceeds both the total value of all publicly traded companies in the United Kingdom and the combined value of the stock markets in Canada and Mexico. According to this data, the company is worth more than anything else.

LSEG’s data predicts that the company’s stock will maintain a price-to-earnings ratio of 32 for the upcoming year.

The ratio is below Nvidia’s three-year average of 37.

In comparison to the same period last year, the company’s first-quarter revenues for this year were $44.1 billion, a 69% rise. Furthermore, the company made a healthy profit of 81 cents per share.

With a 2% margin of error, Nvidia projects that it will make $45 billion in revenue in the second quarter. On August 27th, it is expected to give an explanation of how it performed in the second quarter.

In addition to the profits made throughout the session, Nvidia has grown by more than 22% this year. Recently, the Philadelphia SE Semiconductor Index has increased by almost 15%.

SOURCE: BR