Nvidia stock (NVDA) closed at a record high on Thursday, rising 1.3% amid a broader market rally and putting shares one step closer to unseating Apple (AAPL) as the most valuable company in market history.
During Thursday’s shortened trading session ahead of the July Fourth holiday, shares of the AI chipmaker rose more than 2% to give the company a market cap of $3.92 trillion. As of Thursday’s close, the company’s market cap settled at $3.89 trillion, just fractionally off the record of $3.915 trillion Apple clinched in late 2024.
The iPhone maker’s value has dropped since then as it struggled to catch up to its Big Tech peers on AI and has contended with President Trump’s threat to hit its overseas-made products with tariffs.
Investors have piled into Nvidia after its most recent quarterly earnings report in late May showed the chipmaker continuing to thrive, despite US restrictions on Chinese use of its chips. The stock has continued to notch fresh record highs since late June.
Thursday’s rally adds to what’s been a remarkable turnaround for Nvidia stock after a rocky start to 2025, with shares now up more than 19% this year.
Wedbush analyst Dan Ives said Thursday he expects Nvidia to hit a $4 trillion market capitalization this summer and potentially $5 trillion over the next 18 months.
“We believe tech stocks will have a very strong second half of the year,” he said in a note to clients Thursday. “Our bullish view is that investors are still underestimating the tidal wave of growth on the horizon from the $2 trillion of spending over the next 3 years coming from enterprise and government spending around AI technology and use cases.”
Other market watchers are more skeptical about the AI boom. Legendary short seller Jim Chanos told Bloomberg that the “ecosystem around the AI boom” is similar to the dot-com bubble.
“But it is a riskier revenue stream because if people pull back, they can pull back CapEx very easily. Projects can get put on hold … and that immediately shows up in disappointing revenues and earnings forecast, if it happens,” Chanos said.
“We’re not there yet, but that’s one of the risks out there that I think a lot of people are underestimating,” he added.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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