Electronic chip giant Nvidia on Wednesday became the first company to cross the symbolic threshold of $4,000 billion in market valuation on the New York Stock Exchange. The company is driven by investor enthusiasm for stocks linked to artificial intelligence (AI).
In an optimistic market unconcerned with Donald Trump’s new customs threats, Nvidia’s shares rose 1.91% to $163.10 around 2:30 p.m. GMT.
A little earlier, it exceeded 164 $, allowing it to display a market capitalization of more than 4,000 billion $. For comparison, this is larger than the GDP of France, the United Kingdom or India.
“Nvidia is the strongest stock on the market at the moment,” judges Adam Sarhan of 50 Park Investments to AFP.
Why is Nvidia worth so much?
“If you look at the market, it is a reflection or a mirror of the economy and the strongest sectors of the economy are, by far, technology and AI (…) that is why Nvidia is worth so much and continues to grow,” adds the analyst.
Since the start of the year, Nvidia’s price has jumped by more than 20% while the Nasdaq index, with its strong technological coloring, has for its part experienced a more measured advance, of more than 6%.
But the strong progression of Nvidia stock has not been without rest.
The company plunged on the stock market in January following the success of the Chinese start-up DeepSeek, which managed to build AI models comparable to those of OpenAI (ChatGPT) and other American leaders, with less sophisticated components and in fewer numbers (including Nvidia’s H20 chips).
In a few hours, Nvidia had erased nearly 600 billion in market capitalization.
The return in great form of the manufacturer of processors and graphics cards represents “just accumulating enthusiasm” but “it tells us everything about the present and nothing about the future”, however, warns AFP Kim Forrest, Bokeh Capital Partners.
