Nvidia Nears $4 Trillion Valuation as AI Chip Demand Fuels Historic Rally

Nvidia Corporation's market capitalization briefly touched $3.92 trillion during trading, closing just shy of Apple's all-time record. The semiconductor giant's relentless rally is driven by insatiable demand for its AI processors, which power data centers for tech titans like Microsoft, Alphabet, and Meta.

The stock has surged 68% since April's tariff-related dip, now up 18.67% year-to-date. At current valuations, Nvidia exceeds the combined market cap of all UK-listed companies. While analysts see further growth potential, some caution about AI hype risks and intensifying global competition.

Nvidia closed at $159.34 on July 3, up 1.33% in a holiday-shortened session. Its ascent from $500 billion in 2021 to nearly $4 trillion today underscores its dominance in the AI infrastructure boom.