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Nvidia's ( NVDA ) value surpasses $4 trillion, driven by AI demand

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Company's processors central to AI race among tech giants

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Trade tensions pose risks to Nvidia ( NVDA ) growth

(Adds detail on stock moves, chip demand, Nvidia's ( NVDA ) valuation

and investor comment)

By Noel Randewich

July 10 (Reuters) - Nvidia's ( NVDA ) stock market value

ended the trading session above $4 trillion for the first time

on Thursday, solidifying the chipmaker's position as Wall

Street's central player in a race to dominate AI technology.

Shares of Nvidia ( NVDA ) ended up 0.75% at $164.10, giving it a market

value of $4.004 trillion and extending its lead over Apple ( AAPL ) and

Microsoft ( MSFT ) as it benefits from a surge in demand for

artificial-intelligence technologies.

Nvidia's ( NVDA ) stock market value briefly peaked above $4 trillion on

Wednesday before closing at about $3.97 trillion. It is worth

more than the combined value of all publicly listed companies in

the UK.

Nvidia's ( NVDA ) high-end processors are at the center of a race

between Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet,

Meta Platforms ( META ) and other Wall Street heavyweights to

build AI data centers and dominate the emerging technology.

Nvidia ( NVDA ) is also exposed to conflict between Washington and

Beijing over trade, including restrictions on exports to China

of its most powerful chips.

"Trade tensions and tariffs are a risk, as is competition.

Greater AI adoption could shift part of the demand toward

cheaper alternatives," Swissquote Bank senior analyst Ipek

Ozkardeskaya wrote in a client note.

Nvidia ( NVDA ) achieved a $1 trillion market value for the first

time in June 2023 and tripled it in about a year, faster than

Apple ( AAPL ) and Microsoft ( MSFT ), the only other U.S. firms with

market values above $3 trillion.

Microsoft ( MSFT ) is the second most valuable U.S. company, with a

market capitalization of $3.73 trillion. Its shares dipped 0.4%

on Thursday.

Apple's ( AAPL ) stock has tumbled 15% so far in 2025, leaving its

market value at $3.17 trillion, reflecting investor worries that

the iPhone maker has been slow to introduce AI into its products

and services.

Even after its meteoric rally, Nvidia's ( NVDA ) stock is valued at

about 33 times expected earnings, below its five-year average of

41, according to LSEG.