NVDA Stock Price Closes at Records but No $4T Valuation Yet
The Nasdaq rallied to new highs today as Nvidia stock gains also reached record levels, fueled by optimism over new US semiconductor...
Quick overview
- The Nasdaq Composite Index rose 0.72%, driven by Nvidia's nearly 2% intraday gain amid optimism over US semiconductor incentives.
- Nvidia's stock briefly reached a market capitalization of $4 trillion, closing at $162.88, just shy of an official milestone.
- The US Senate approved increased investment tax credits for domestic semiconductor manufacturing, boosting investor sentiment in the sector.
- Market sentiment has shifted back to growth, with investors optimistic about Nvidia's leadership in AI chips and potential domestic production expansions.
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The Nasdaq rallied to new highs today as Nvidia stock gains also reached record levels, fueled by optimism over new US semiconductor incentives.
Nvidia’s Policy Boost Pushes Nasdaq Higher
The Nasdaq Composite Index closed higher on Wednesday, gaining 0.72% as Wall Street cheered a fresh wave of strength in technology stocks. Leading the charge was Nvidia (NASDAQ: NVDA), which rallied nearly 2% intraday on optimism about renewed government support for the semiconductor sector. The stock added around $4 in value and traded close to its all-time highs, once again highlighting investor enthusiasm for AI chip leaders.
Nvidia Briefly Breaches but Doesn’t Breaks $4 Trillion Mark
In morning trading, Nvidia’s shares hit $163.93, crossing the historic $4 trillion market capitalization milestone for the first time. Though the stock topped $164.42 during the session, it closed at $162.88, narrowly missing an “official” $4 trillion close but still setting a new record finish. Investors are now watching the $200 level as a potential psychological barrier, underscoring the company’s meteoric rise as the dominant AI hardware provider.
Legislative Tailwinds Lift Semiconductor Stocks
Much of the rally was driven by significant policy news. The CHIPS and Science Act incentives received a major boost when the US Senate approved a measure to increase investment tax credits for domestic semiconductor manufacturing from 25% to 35%. This move aims to encourage more production onshore in the US in the face of stiff international competition, especially from China.
The legislation will now move to the House, with lawmakers targeting delivery of the final package to President Trump by July 4. Investors and analysts are already speculating that these expanded incentives will lead to announcements of new, cutting-edge semiconductor plants on American soil, reinforcing the country’s technological self-sufficiency goals.
Market Sentiment Shifts Back to Growth
Beyond the policy news, the broader mood in markets has turned notably bullish for semiconductors and technology stocks. Following a brief pause in early June, investors have quickly rotated back into growth sectors, encouraged by Nvidia’s consistently strong post-earnings momentum and hopes that increased domestic investment will secure supply chains for years to come.
Outlook and Investor Watchpoints
As Nvidia cements its leadership in AI chips, Wall Street will closely track whether the boosted CHIPS Act incentives translate into real construction plans and capacity expansions in the US. Such announcements would be a geopolitical win for Washington while providing an ongoing demand pipeline for advanced designs from Nvidia and its peers.
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