Nvidia shares have reached a historic milestone, crossing $5.3 trillion in market valuation to become the world's most valuable company ever. According to reports from LiveMint, the stock closed Monday just below intraday highs, rising in after-hours trading to $218.75, solidifying Nvidia's lead over Google ($4.2 trillion) and Apple ($3.9 trillion) as the next closest challengers for the title of the world's most valuable corporation. The S&P 500 also hit a new record on the same day, finishing at 7,173.91, reflecting broader market optimism about AI infrastructure spending.
Nvidia shares have staged a remarkable comeback in April, rebounding 24.5% and breaking multiple record highs as investors regained confidence in the AI trade. According to reports from LiveMint, this recovery comes after a prolonged stretch of stagnation, with shares remaining largely flat from September 2025 through the end of last month. The stock last delivered a double-digit monthly gain in July 2025, when it surged 12%, making this April's performance particularly significant. The latest surge was further boosted by a partnership announcement between Qualcomm and OpenAI, a major Nvidia customer, to co-develop smartphone processing chips, with Qualcomm's own shares jumping roughly 1% on the news.
BofA has named Nvidia as its top semiconductor stock pick, highlighting a significant valuation disconnect between the company's market capitalization and earnings power. As reported by Intellectia.AI, BofA analysts emphasize that despite Nvidia's substantial stock price increase, its earnings potential remains underappreciated, potentially providing a good entry point for investors. The brokerage firm notes that Nvidia benefits from strong demand in artificial intelligence and data center sectors, driving revenue growth and likely continuing to attract investor interest. BofA's recommendation comes amid broader volatility in tech stocks, suggesting the current market positioning may offer attractive entry opportunities for long-term investors.
Nvidia maintains a dominant 92% share of the data center GPU market, with its latest quarterly results demonstrating exceptional performance. According to The Motley Fool, fiscal fourth-quarter revenue reached $68.1 billion, up 73% year-over-year and 20% sequentially, fueled almost entirely by $62.3 billion in data center sales. Earnings per share jumped 82% to $1.62, while the data center segment, which accounts for more than 90% of total revenue, grew 22% sequentially and 75% YoY. Management has guided to revenue of approximately $78 billion in the current quarter, which would mark about 77% growth year-over-year. CEO Jensen Huang has projected "at least" $1 trillion from sales of Blackwell and Vera Rubin chips alone by the end of 2027, stating the company will be "short" of demand.
The data center boom presents a massive opportunity for Nvidia, with total capital outlays of $7 trillion by 2030 according to McKinsey & Company. About 39% of total data center spending is dedicated to GPUs, according to Business Insider, suggesting a $2.5 trillion opportunity over the coming five years that's Nvidia's for the taking. Despite recent gains, The Motley Fool reports Nvidia is still attractively priced at 26 times forward earnings, an attractive valuation for a company growing revenue and profits by high double digits. Analysts' consensus estimates call for revenue of $371 billion in fiscal 2027 and $484 billion in fiscal 2028, which falls far short of Huang's $1 trillion estimate and the potential $2.5 trillion data center opportunity.
