U.S.-based chip manufacturer Nvidia achieved a significant accomplishment when it became the first publicly traded company to surpass $4 trillion in its market value. This demonstrates how valuable Nvidia and the technology sector have become to the total U.S. stock market. A significant factor in Nvidia’s rapid ascendance is that it is increasingly becoming a major contributor to some of the key market indexes.
Nvidia’s Rapid Growth
Nvidia’s share price has increased substantially over the past couple of years. Since October 2022, Nvidia’s share price has increased about 1,350%, and has risen 22% in 2025, versus 6 percent for the S&P 500. The fact that it took just over one year for Nvidia to move from $3 trillion to $4 trillion in market value is a significant indication of its rate of growth.
Importance of Winning Market Shares
Due to it’s substantial market value, Nvidia is now one of the largest components of the S&P 500 index, comprising about 7.5% of this meaningful measure of the U.S. stock market. Nvidia’s market share is also large within the popular indices such as the Invesco QQQ ETF and the Philadelphia Semiconductor index. Due to these considerable market shares, Nvidia possesses significant weight and therefore influence on the performance of these funds and indexes.
Dominance in tech sector
Nvidia is not alone at the top. Nvidia’s shares are a little larger than Microsoft ($3.7 trillion) with Apple’s valuation currently at $3.1 trillion. Together with Amazon, Alphabet, Meta, and Broadcom (the 7 largest companies), the technology sector now accounts for roughly one-third of the S&P 500. The technology sector is now the largest sector by market value in the U.S. stock market, almost equal to where it was approaching the peak in 2000, the prior dot-com boom.
