Nvidia briefly crosses $4 trillion market cap — GPU maker and AI bulwark was the first to reach the milestone

Nvidia CEO Jensen Huang
(Image credit: Nvidia)

Nvidia on Wednesday became the world's first company to reach a market capitalization of $4 trillion, making it the world's most valuable company ever. The company's stock price is driven by the AI frenzy as well as its unique position in the AI ecosystem as the key supplier of hardware and software stack for training and inference.

By reaching the $4 trillion market capitalization, Nvidia not only left behind such tech giants as Apple, Amazon, Alphabet (Google), Meta (Facebook), and Microsoft, but also the vast majority of semiconductor companies. Only Broadcom ($1.298 trillion) and TSMC ($1.2 trillion) are in the Top 10 of the world's most valuable companies and are among the three semiconductor firms to reach a trillion-dollar capitalization mark.

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Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • Thunder64
    Way overvalued.
    Reply
  • derekullo
    Thunder64 said:
    Way overvalued.
    Yahoo Finance shows the forward P/E ratio, which uses projected earnings, is around 38.02
    NVIDIA's P/E ratio is higher than the average P/E ratio of semiconductor stocks, which are around 32.1.
    I wouldn't say 6 points makes it way overvalued.
    They actually do generate the revenue to support their valuation.
    Reply