Tech giant Nvidia Corporation saw a rise of around $4 during Wednesday’s trading session pushing its share price to a high of $164.42 – and sending its market capitalisation past $4 trillion.
This made it the first publicly traded company to surpass this milestone. Although the price didn’t quite manage to hold the $4 trillion mark, it showed a definite direction and intent.
Rollercoaster ride – down
The company has recovered from a low of around $94 which it hit in early April this year due to a multitude of factors – selling pressure from investors taking profits being the obvious one, after hitting a January high of just under $150 per share.
Many experts were calling for a bear market with the price heading steadily down from there, and with President Trump talking tariffs in mid March, to say the world’s economic outlook was looking unstable would have been an understatement.
To compound all this, China’s release of DeepSeek in the first few months of 2025, an AI model that was hailed as cheaper and more effective than its competitors, did nothing to help the descent in price.
Rollercoaster ride – up
Despite all this, the price has regained 74% of its value since its low three months ago, even after company owner Jensen Huang began selling off shares in June: 100,000 at a gross value of nearly $14.5 million, which is part of a bigger plan to sell off six million shares worth around $865 million this year.
AI is now being recognised as essential infrastructure
The most recent move up has been attributed to Wall Street’s confidence in the future of AI and the surrounding technologies, Nvidia being at the forefront of microchip technology.
Investors who have held their shares in the company this year have benefited from Q1 revenue up 12% and 69% year on year.
On the back of this success, Huang said: “Countries around the world are recognising AI as essential infrastructure, just like electricity and the internet and Nvidia stands at the centre of this profound transformation”.
Disclaimer: This is the opinion of this columnist and should not be considered impartial investment advice.
