Nvidia Shares Hit All-Time High, Market Cap Soars to $3.77 Trillion, Becomes World’s Most Valuable Company

Nvidia Shares Hit All-Time High, Market Cap Soars to $3.77 Trillion, Becomes World’s Most Valuable Company

 

Nvidia shares surged sharply on Wednesday (June 25), reaching an all-time high of $154.31 per share, up 4.3% from the previous day. This rally pushed the company’s total market capitalization to $3.77 trillion, surpassing Microsoft and making Nvidia the most valuable publicly traded company in the world.

The sharp rise was driven by Nvidia’s latest quarterly earnings, which showed robust growth despite ongoing restrictions on sales of advanced chips to China. The company continues to generate significant revenue from major tech firms such as Microsoft, Meta, Alphabet, and Amazon—together accounting for over 40% of Nvidia’s total revenue—who are all steadily investing in AI infrastructure.

Analysts at Allspring Global Investments noted a clear resurgence in confidence regarding Nvidia’s growth prospects, fueled by the ongoing AI arms race that is expected to last through 2025 and potentially into 2026.

In terms of valuation, Nvidia shares remain relatively attractive, trading at 31.5 times forward earnings—below the company’s 10-year average and not far from the Nasdaq 100’s average of 27 times. Additionally, Nvidia’s PEG ratio stands at just 0.9, the lowest among the so-called “Magnificent 7” tech giants.

However, analysts caution that while the outlook remains positive, the company’s longer-term growth will depend on whether its key customers continue to ramp up AI spending. A slowdown in investment could trigger significant volatility in the stock.