Nvidia Makes History with Market Cap Surpassing $4 Trillion
Author: Samir Al Khoury
Date: July 11, 2025
Overview
Nvidia has achieved a historic milestone by surpassing a market capitalization of $4 trillion, making it the most valuable company in the world, ahead of tech giants Apple and Microsoft. This remarkable growth represents an increase of over 1000% since the start of 2023 and accounts for approximately 7.50% of the S&P 500 index.
Drivers of Growth
The surge in Nvidia's valuation is largely attributed to the increasing demand for its semiconductor chips. Major clients include domestic companies like Microsoft, Amazon, and Apple, as well as international clients, despite U.S. government restrictions on chip exports to China aimed at curbing China's technological progress. Market analysts predict that Nvidia's market cap may continue to rise in the near future.
Stock Performance
Nvidia's stock price reached a record high of $164.50 recently, marking a nearly 90% increase from a low of $86.62 on April 7, 2025. The stock is up about 22% year-to-date and closed at $164.10.
In comparison, Nvidia's stock has outperformed major U.S. equity benchmarks, including the S&P 500, Nasdaq 100, and the Magnificent 7 index.
Upcoming Earnings Report
Investors are eagerly awaiting Nvidia's Q2 earnings report, scheduled for August 27, 2025. Analysts forecast earnings of $1.00 per share, a significant increase from the previous $0.68 per share. Revenue is expected to reach $45.58 billion, up from $30.00 billion in the prior quarter.
Technical Analysis
From a technical standpoint, several indicators suggest that Nvidia's bullish momentum may persist:
- Moving Averages: The 20-, 50-, and 200-day moving averages are all trending upward, with the 20-day MA at $152 acting as a key support level.
- RSI (Relative Strength Index): Currently at 74, indicating overbought conditions and strong bullish momentum.
- Directional Movement Index (DMI): The positive DMI is around 39, while the negative DMI is near 11, indicating strong buying pressure. The Average Directional Index (ADX) stands at 46, signaling a robust upward trend.