Nvidia Stock Gains After Failing to Hold $4 Trillion. Will It Succeed Today?

Nvidia cofounder and CEO Jensen Huang. (I-HWA CHENG/AFP via Getty Images)

Nvidia stock was rising again in Thursday’s premarket, putting the artificial intelligence chip maker on course to extend its record-breaking rally.

Shares climbed 0.9% to $164.41 in premarket trading, putting the company on track to open with a market capitalization above $4 trillion. Futures tracking the S&P 500 were down 0.1%.

The move higher came a day after Nvidia became the first U.S. company in history to hit a $4 trillion valuation. Shares pulled back shortly after reaching the milestone, giving the semiconductor giant a closing market cap of $3.97 trillion. That set a new closing record, beating the $3.915 trillion value reached by Apple in December 2024.

To put some perspective on just how significant a $4 trillion market cap is: Bleakley Financial Group CIO Peter Boockvar noted in a Thursday Substack post that the figure equates to about 3.6% of global GDP. At the peak of the dot-com bubble in March 2000, Cisco Systems had a $550 billion market cap that equated to about 1.6% of global GDP, he added. Boockvar noted this comments were not an opinion on the stock but “just a comparison after the incredible it has had.”

Created with Highcharts 9.0.1Nvidia stockSource: FactSet

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The stock has surged 51% over the past three months, leading the broader market rebound after April’s tariff selloff. There’s little reason to think the rally will fizzle out anytime soon, with sky-high demand for AI likely to carry on boosting the company’s earnings.

Tesla CEO Elon Musk’s startup xAI launched its new chatbot Grok 4 on Thursday, underlining how fast the space is developing.

Nvidia is also planning to launch a new AI chip designed specifically for China, according to a report, just months after CEO Jensen Huang warned that U.S. export curbs could hit sales by $15 billion.

Huang could meet with Chinese leaders next week to discuss a version of one of Nvidia’s Blackwell graphics processing units that has been altered to fit the new regulations, the Financial Times reported Wednesday, citing people with knowledge of the plans.

Other chip stocks were also rising on Thursday. Advanced Micro Devices gained 2.6% and Broadcom climbed 0.5% ahead of the opening bell.

Write to George Glover at george.glover@dowjones.com