Trump Trade: Nvidia crosses $3.6 trillion in market value after Trump win

Nvidia market cap: Nvidia shares soared to a record high on Thursday, becoming the first company in history to surpass a market valuation of $3.6 trillion, as Wall Street continued a rally fuelled by Donald Trump’s return to the White House.

The leading AI chipmaker saw its shares rise 2.2 per cent, driven by investor optimism over anticipated tax cuts and regulatory relief following the Republican candidate’s win in Tuesday's election.

Nvidia's market cap pips $3.65 trillion

By the end of trading, Nvidia’s market value reached $3.65 trillion, surpassing Apple ’s previous record of $3.57 trillion, set on 21 October. Nvidia overtook Apple on Tuesday, claiming the title of the world’s most valuable company, according to LSEG data. Apple’s stock also rose 2.1 per cent on Thursday, putting its market value at $3.44 trillion.

The S&P 500 technology index has jumped over 4 per cent in the two trading sessions since Trump’s election victory.

AI race-driving Nvidia 

Nvidia has led gains in the US stock market, driven by its role in the AI arms race as companies like Microsoft, Alphabet, and other major players invest heavily in AI infrastructure and computing power. Nvidia’s stock has climbed 12 per cent so far in November, with its value tripling over 2024.

With its current valuation, Nvidia now exceeds the combined worth of major corporations such as Eli Lilly, Walmart, JPMorgan, Visa, UnitedHealth Group, and Netflix.

Analysts, on average, expect Nvidia to report an over 80 per cent increase in quarterly revenue to $32.9 billion when it releases its earnings on 20 November, according to LSEG.

In June, Nvidia briefly held the title of the world’s most valuable company before being overtaken by Microsoft and Apple. Currently, Microsoft’s market valuation stands at nearly $3.16 trillion, with its stock up 1.25 per cent on Thursday. For several months, the three tech giants have remained close in market capitalisation.

(With Reuters inputs)