On July 9, 2025, the stock market witnessed a remarkable rebound after two days of losses, with the Nasdaq Composite closing at a record high. The standout story was the historic achievement of Nvidia Corporation, which briefly became the first publicly traded company to reach a staggering $4 trillion market capitalization. This milestone marks a defining moment not only for Nvidia but also for the broader technology and financial markets.
Nvidia's shares surged 2.8% to $164.42 during the session, briefly pushing its market cap past the $4 trillion mark. Although the stock closed with a more modest gain of 1.8%, valuing the company at approximately $3.97 trillion by the end of the day, the achievement of crossing the $4 trillion threshold during trading remains unprecedented. This feat places Nvidia ahead of tech giants Microsoft and Apple, both of which previously hit the $3 trillion valuation mark but have yet to reach Nvidia’s new heights.
Founded in 1993 and based in Silicon Valley, Nvidia's rise has been meteoric. The company first surpassed a $1 trillion market cap in June 2023, then crossed the $2 trillion mark in February 2024, followed by $3 trillion in June 2025. This rapid escalation reflects Nvidia’s dominant position in the graphics processing unit (GPU) market, which powers the artificial intelligence (AI) revolution, especially the large language models that underpin applications like ChatGPT.
The surge in Nvidia’s stock is closely tied to the explosive demand for AI hardware and chips. Since the launch of ChatGPT in late 2022, Nvidia has solidified its role as the decisive leader in supplying the essential GPUs that enable generative AI technologies. Over the past five years, the company’s shares have increased more than fifteenfold, with a 22% gain since the start of 2025 alone, and a 15% rise in the last month.
Despite geopolitical tensions and ongoing export restrictions, particularly affecting sales to China, Nvidia has maintained strong growth. Earlier in 2025, concerns arose from China’s DeepSeek AI model, which some feared might reduce the need for Nvidia’s chips. However, Nvidia rebounded from these worries, demonstrating resilience in the face of market uncertainties.
In May 2025, Nvidia disclosed that recent U.S. export restrictions on its H20 chips, designed for the Chinese market, would cost the company an estimated $8 billion in lost sales. CEO Jensen Huang commented during the earnings call, "The $50 billion China market is effectively closed to U.S. industry," underscoring the impact of these trade limitations. Huang also described the loss of access to the Chinese market as a "tremendous loss" for Nvidia.
The company’s financial performance has mirrored its stock market success. Nvidia reported a remarkable 63% year-over-year profit growth for the fourth quarter of 2024, driven by accelerating sales of its microchips and processors. Even after a dip earlier in 2025, when the stock fell below $100 amid tariff-related selloffs, Nvidia’s shares have rebounded dramatically, rising 73% from their April low.
Investor sentiment remains overwhelmingly positive. Among 40 Wall Street analysts, Nvidia holds a consensus Strong Buy rating, with 35 recommending a Buy, four Hold, and only one Sell in the past three months. The average price target stands at $175.97, implying an upside of over 11% from current levels.
The broader market also showed signs of cautious optimism on July 9. U.S. stock futures edged higher as investors awaited updates from the White House on tariff policies. The Dow Jones Industrial Average futures rose 0.2% after a slight drop the previous day, while the S&P 500 and Nasdaq futures also inched upward. Meanwhile, Bitcoin traded around $109,000, and oil futures ticked higher, contrasting with a decline in gold prices.
In other market news, Starbucks attracted significant interest for a potential stake sale in its Chinese operations, with offers reportedly valuing the unit at up to $10 billion. Nearly 30 domestic and foreign private equity firms submitted non-binding bids, with Starbucks possibly retaining a 30% stake. Most investors are eyeing a controlling interest in the Chinese business, highlighting the region’s strategic importance.
Biopharmaceutical company Verona Pharma saw its U.S.-listed shares surge 20% in premarket trading after Merck agreed to acquire the London-based firm for approximately $10 billion. The deal, expected to close in the fourth quarter of 2025, adds a promising respiratory drug to Merck’s portfolio.
Renewable energy provider AES also experienced a strong market reaction, with shares soaring nearly 15% following reports that the company is exploring options including a potential sale amid takeover interest. Major infrastructure investors such as BlackRock’s Global Infrastructure Partners and Brookfield Asset Management have been evaluating AES, especially after its shares lost about half their value over the past two years.
Nvidia’s historic market cap milestone underscores the transformative impact of AI technologies on the global economy and financial markets. As the world’s most valuable public company, Nvidia exemplifies how innovation in chipmaking and AI hardware can drive unprecedented growth and reshape industries. While challenges remain, including geopolitical tensions and trade restrictions, Nvidia’s trajectory highlights the dynamic interplay of technology, market forces, and investor confidence in shaping the future.
