Global Stocks Rise as Nvidia Hits $3.76 Trillion Valuation — What Nigerian Investors Need to Know

Image source: Nvidia Newsroom

As the week winds down, global markets are trading higher, shaking off Wednesday’s mixed performance on Wall Street. With U.S. unemployment claims data due at 14:30 CET today (June 26, 2025), investors are keeping a close eye on macro signals that could steer the markets before month-end.

But perhaps the headline stealer is none other than Nvidia, the semiconductor titan at the centre of the AI revolution. The company’s shares surged 4.3% on Wednesday, lifting its market valuation to $3.76 trillion — higher than Apple, Microsoft, and other legacy tech giants. This performance far outpaced broader indices and has many wondering: How much higher can Nvidia go?

Meanwhile, Tesla lagged behind, shedding 3.8% after disappointing European sales data for May.

For Nigerian investors seeking alpha in foreign equities and currency-linked assets, these developments present both opportunities and risks. Let’s break down what’s happening in global markets, what it means for you, and how to position accordingly.

Nvidia’s Valuation Surge: Is It Sustainable?

Nvidia’s stock continues to defy gravity. Wednesday’s rally was fuelled by Loop Capital raising its price target from $175 to $250 per share — a bold projection, even by AI bubble standards. This upgrade came just as Nvidia overtook every major competitor in market cap, an achievement that reflects:

• AI dominance: Nvidia chips are powering everything from data centres to AI supercomputers and autonomous vehicles.
• Investor demand: The stock has become a proxy for the AI revolution, with institutional and retail demand driving up prices.
• Strong earnings growth: Despite macroeconomic headwinds, Nvidia has beaten earnings expectations quarter after quarter.

However, Nigerian investors must be cautious. When any stock — even a company as innovative as Nvidia — outpaces the entire market, it often triggers profit-taking or correction cycles. Add to that the recent news of insider selling (including CEO Jensen Huang filing to sell up to 6 million shares by year-end), and you get a potential red flag.

Tesla Struggles with European Sales

On the flip side, Tesla's 3.8% drop on Wednesday reflects deeper issues in the electric vehicle (EV) market. Recent data revealed that Tesla's May car sales in Europe fell sharply, raising concerns about demand, competition from Chinese EV makers, and macroeconomic pressure on consumers.

For traders in Nigeria with exposure to Tesla via ETFs or fractional shares, this is a sign to monitor EV industry fundamentals carefully. A weakening European consumer base and regulatory uncertainty in key regions like Germany and France could weigh further on Tesla’s momentum.

Broader Market Highlights

Alongside individual stock moves, global equity indexes mostly climbed today:

• Dow Jones Industrial Average (DJI): +0.3%
• Nikkei 225 (Japan): +1.7%
• Hang Seng Index (Hong Kong): -0.1%
• ASX 200 (Australia): +0.5%

Asian equities, led by Japan’s Nikkei, are being buoyed by export optimism and tech sector recovery. Hong Kong’s minor dip reflects caution ahead of upcoming Chinese data.

The overall market tone is cautiously optimistic, as the US ceasefire deal between Israel and Iran continues to ease geopolitical tensions. This has improved sentiment across emerging and developed markets alike — a good sign for Nigerian traders looking to gain from global risk-on rallies.

Forex Market Snapshot

Currency markets remain relatively calm but offer insight into global capital flows:

• EUR/USD: +0.3%
• GBP/USD: +0.4%
• USD/JPY: -0.2%
• AUD/USD: +0.5%

The US dollar weakened modestly, with strength in the euro, pound, and Australian dollar suggesting improving confidence outside the US. A weaker dollar often supports commodities and emerging markets, potentially favouring Nigerian naira exchange-linked investments like oil or FX carry trades.

Commodities & Gold: Stable Before US Data

Commodity prices were mostly flat this morning:

• Brent Crude: +0.1%
• WTI Crude Oil: +0.1%
• Gold (XAUUSD): +0.1%

The muted price action in oil and gold reflects a wait-and-see attitude before today’s US jobless claims report. Traders are gauging whether inflation is cooling and how the Federal Reserve will react in upcoming meetings.

For Nigeria, which is a major oil exporter, Brent’s slight gain is a welcome reprieve after recent declines. If geopolitical risks remain subdued and economic data doesn’t surprise, oil could continue edging higher — supporting the country’s fiscal balance.

What Nigerian Investors Should Watch

1. Nvidia: Buy or Beware?

If you’re already holding Nvidia, you may be enjoying triple-digit returns this year. But with a $3.76 trillion valuation, future gains may be slower unless the company continues to outperform.

Smart move: Consider trimming some profits or setting trailing stop-loss orders to lock in gains.

2. Dollar Weakness Could Benefit Naira-Linked Trades

As the USD softens, this might temporarily support the naira and allow for improved FX conversion rates for Nigerians trading in U.S. markets. Use this window to rebalance or move funds strategically.

3. Keep an Eye on U.S. Data

Today’s unemployment claims and upcoming economic releases (like nonfarm payrolls and manufacturing data) will be key to understanding whether a Fed pivot is near. Lower-than-expected data may support equities and gold, while strong data could reverse gains.

Final Takeaway

Global markets are walking a fine line between optimism and overextension. Nvidia's breakout has created momentum across tech stocks, but insider sales and Tesla’s dip remind investors that not every stock can defy gravity forever.

For Nigerian investors and traders, this is a prime opportunity to be strategic. Focus on quality assets, remain alert to global data releases, and take advantage of temporary currency or commodity trends.

The markets are moving — are you moving with them?

Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Trading or investing in equities, currencies, or commodities involves risk. Readers should do their own research or consult a licensed financial advisor before making investment decisions.