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Sci-Tech Published At: 10 Nov 2024, 11:04 a.m.

Nvidia becomes first company to surpass $3.6 trillion market value after Trump's election win


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Nvidia was the biggest winner in last month's wild global market value shifts. Image: Shutterstock

Nvidia Corp has made history as the first company to reach a stock market valuation of $3.65 trillion, surpassing Apple's previous record of $3.57 trillion. The surge in the chipmaker's stock comes as Wall Street celebrates renewed optimism following Donald Trump's recent return to the US presidency, with expectations of tax cuts and reduced regulatory measures.

On Thursday, Nvidia's shares rose 2.2%, driven by investor confidence in the tech sector's potential under a pro-business administration. This performance helped Nvidia's market value outpace Apple's, which also saw gains, with its stock climbing 2.1% to a value of $3.44 trillion. Microsoft, another tech giant, currently holds a market valuation of nearly $3.16 trillion after its stock increased by 1.25% the same day.

Nvidia's extraordinary rise has been bolstered by its dominance in the artificial intelligence (AI) chip market. The company has benefited significantly from a technological arms race among industry giants like Microsoft, Alphabet, and other major players, who are striving to expand their AI computing capabilities. As a result, Nvidia's stock has skyrocketed, tripling in value since the start of 2024 and posting a 12% gain in November alone.

Industry analysts anticipate Nvidia's impressive growth to continue, with projections that the company will report an 80% increase in quarterly revenue to $32.9 billion on November 20, according to LSEG data. Earlier this year, Nvidia briefly claimed the title of the world's most valuable company but was subsequently overtaken by Apple and Microsoft. However, its recent surge has solidified its position at the top, outperforming a combined valuation of other US heavyweights, including Eli Lilly, Walmart, JPMorgan, Visa, UnitedHealth, and Netflix.