Nvidia shares will be closed in record time as AI chip makers approach the most valuable company in history
nvidia stock (NVDA) closed at record highs on Thursday, rising 1.3% amid a wider market rally, bringing one step closer to Apple, escaping its stocks (aapl)As the most valuable company in the history of the market.
Prior to the July 4 holiday, Thursday’s shortened trading session saw AI chip maker shares rise more than 2%, providing the company with a market capitalization of $3.92 trillion. As of the end of Thursday, the company’s market capitalization had settled at $3.89 trillion, a meagre breaking from the $3.915 trillion apple record in the second half of 2024.
The value of iPhone makers has since declined as they struggled to keep up with AI giant Hi-tech peers and have fought with President Trump. The threat of tariffs on products made overseas.
Investors stacked up on Nvidia after showing a quarterly revenue report in late May that chipmakers continue to thrive despite US restrictions on Chinese chip use. The inventory continues to be chop Fresh record high Starting from late June.
Thursday’s rally adds to what was an astonishing turnover in Nvidia stock A rocky start until 2025stocks have increased by more than 19% this year.
Wedbush analyst Dan Ives said Thursday that Nvidia expects it to reach a market capitalization of $4 trillion this summer, reaching a potential $5 trillion in the next 18 months.
“We believe that tech stocks will be a very strong second half of the year,” he said in a note to client Thursday. “Our bullish view is that investors are underestimating the tide of the horizon from $2 trillion in spending over the next three years coming from corporate and government spending over AI technology and use cases.”
Other market watchers are more skeptical about the AI boom. Legendary short-seller Jim Chanos I told Bloomberg The “ecosystem around the AI boom” is similar to the dot-com bubble.
“But that’s a risky revenue stream, because once people get it back, Capex can be pulled back very easily. The project can be put on hold… And if it happens, it will appear in revenue and revenue forecasts that will quickly disappoint,” Chanos said.
“We’re not there yet, but I think a lot of people underestimate that,” he added.
Laura Bratton is a reporter for Yahoo Finance. Follow her at Bluesky @laurabratton.bsky.social. Email her to laura.bratton@yahooinc.com.
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