The US stock market bounced back in a big way this week. With the US and China agreeing to a 90-day tariff pause, investors flocked to Wall Street as a host of companies saw their shares jump in value. The reversal did reignite one ongoing debate between Amazon (AMZN) and Nvidia (NVDA), as both look on pace to join the $4 trillion club.
The companies have emerged as two of the strongest brands within the Magnificent 7. Moreover, with the market’s worst days behind them this year, they have exploded to break through the $3 trillion mark. The question is, which will be the first to jump another $1 trillion and set a new all-time record?
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Amazon & Nvidia Racing to History: Which Will Hit $4 Trillion First?
The US stock market has performed well this week after months of volatility in the first few months of the year. Specifically, the S&P 500 has jumped for the fifth consecutive day, as the Nasdaq and Dow Jones Indexes are both in the green on the week. The performances have seen a host of mega-cap stocks get increased optimism as Q2 gets off and running.
The performance has ignited a specific debate between two of the biggest companies in the world. Indeed, traders have begun to question whether Amazon (AMZN) or Nvidia (NVDA) will be the first to reach the $4 trillion market cap figure. There is certainly a leader at this point, but it remains anyone’s game.
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At the conclusion of trading on Friday, Nvidia was clearly ahead of the e-commerce giant. Specifically, the AI chipmaker has reclaimed the spot as the second-largest company by market cap in the world. Indeed, the weekly jump saw it reach $3.312 trillion.
That it’s far ahead of Amazon, which sits at fourth on the list with a $2.172 trillion market cap figure. However, there are some reasons why the race could still be up in the air. Firstly, the ongoing tariff drama is a real thing, and one that has affected Nvidia greatly already.
US President Donald Trump has been increasingly fickle with his import duties. That is something that could resume as quickly as it was paused after the 90-day halt. Although Nvidia struck a deal with Saudi Arabia this week, there are still worries about its business in China and how that could be affected by geopolitical tensions.
Which Will Come Out on Top?
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Amazon is in a much different boat and is far more diversified. The company’s Amazon Web Services (AWS) business is the top cloud-computing firm in the world alongside its e-commerce and advertising entities. That has given it some hope to skyrocket up the market cap rankings amid recent tariff concerns hitting Apple (AAPL).
At this present moment, Nvidia still seems poised to reach $4 trillion first. Although it has been volatile, it has a track record of impressive gains. In 2024, it jumped more than 174% over the course of the year. If it can mirror that kind of increase, it should be eyeing the market value history in 2025.
