Nvidia’s Market Capitalisation Hits New Heights
Nvidia is close to becoming the most valuable company in history. On Thursday (July 3), the chipmaker’s market value rose to $3.92 trillion as investors continued to bet on artificial intelligence.
Shares of Nvidia increased by 2.2% to $160.6 during morning trading. This rise pushed its market capitalisation above Apple’s record of $3.915 trillion, which was set on December 26, 2024. Nvidia’s new chips have helped train the largest AI models, boosting demand for its products.
The company, based in Santa Clara, California, leads in the design of advanced AI chips. This has fuelled growth as the world seeks faster, more powerful systems.
Microsoft and Apple Follow Nvidia in Market Race
Microsoft remains the second-most valuable company, with a market value of $3.7 trillion as its shares rose by 1.5% to $498.5. Apple follows in third place, rising by 0.8%, giving it a market value of $3.19 trillion.
On Thursday, the S&P 500 and the Nasdaq closed at record highs, driven by a stronger-than-expected US jobs report. Nvidia shares also surged as its valuation approached $4 trillion.
Markets React to Jobs Data and Policy Moves
Traders quickly adjusted their expectations for interest-rate cuts. The chance of a 25-basis-point rate cut in September now stands at 68%, down from 74% a week earlier, according to CME Group’s Fedwatch tool.
Kristina Hooper, Chief Market Strategist at Man Group, noted, “We are seeing a real bout of irrational exuberance, the stock market is very biased towards optimism.” However, she added that the jobs report brought some relief.
The Dow Jones rose by 344.11 points, or 0.77%, to 44,828.53. The S&P 500 gained 51.94 points, or 0.83%, to reach 6,279.36. The Nasdaq climbed 207.97 points, or 1.02%, to close at 20,601.10.
Data showed nonfarm payrolls rose by 147,000 jobs last month, higher than the 110,000 forecast by economists polled by Reuters. Unemployment dropped to 4.1%, better than the expected 4.3%.
Due to the Independence Day holiday on Friday, the report was released early, and markets closed at 1 p.m. ET with lighter trading volumes.
In Washington, Republicans in the US House of Representatives moved President Donald Trump’s large tax-cut and spending bill towards a final vote. The bill is expected to add $3.4 trillion to the nation’s $36.2 trillion debt over the next decade.
In other market news, TripAdvisor rose after reports that Starboard Value had built a 9% stake in the company. Datadog also climbed, as it prepared to replace Juniper Networks in the S&P 500.
with inputs from Reuters