Nvidia has reached a significant milestone, becoming the first publicly traded company to surpass a market value of $4 trillion. On Wednesday, the company’s stock rose by 2.5% after the market opened, setting an intraday record high that pushed its valuation beyond this historic mark. This achievement highlights Nvidia’s pivotal role in the ongoing surge of artificial intelligence (AI) technologies.
The US-based chipmaker has experienced a remarkable rise, with its stock climbing approximately 20% this year alone. Nvidia’s ascent has outpaced both Apple and Microsoft, which held the title of the world’s most valuable companies in recent months. Apple started the year valued at around $3.9 trillion but has seen a decline amid various economic challenges, including trade tensions stemming from Donald Trump‘s tariffs.
Nvidia’s chips are critical in powering the data centers utilized by tech giants like Microsoft, Amazon, and Google, which rely on these technologies to support their AI models and cloud services. The demand for AI infrastructure is projected to exceed $200 billion globally by 2028, according to the International Data Corporation (IDC).
In the fiscal quarter ending in April, Nvidia reported $44.1 billion in revenue, marking a substantial 69% increase from the same period the previous year. Wedbush Securities analyst Dan Ives noted, “There is one company in the world that is the foundation for the AI Revolution and that is Nvidia,” emphasizing the company’s central position in the tech landscape.
Nvidia initially gained recognition for its graphics processing units, which have long been popular among PC gamers. Recently, the company has expanded its focus to include AI models aimed at enhancing autonomous robots and vehicles. At its annual developers conference in March, Nvidia unveiled an update to its highly regarded Blackwell chip, named Blackwell Ultra, designed to improve support for advanced AI reasoning capabilities.
In May 2023, Nvidia became the first company to hit the $1 trillion mark. Ives remarked on the significance of Nvidia’s latest achievement, stating, “This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth led by the one chip fueling AI … Nvidia.” He also projected that Microsoft, currently valued at around $3.77 trillion, could also reach the $4 trillion threshold this summer.
The success of Nvidia has significantly boosted the wealth of its CEO, Jensen Huang. As of Tuesday, Huang was ranked as the tenth wealthiest individual globally, with a net worth of $140 billion, according to the Bloomberg Billionaires Index. His profile has grown beyond the tech industry, as he has engaged with political figures, including meeting with President Trump and participating in a high-profile trip to Saudi Arabia.
Despite its rapid growth, Nvidia has faced challenges. Early this year, the emergence of Chinese startup DeepSeek introduced a powerful yet cost-effective AI model, raising concerns about the necessity of expensive chips and hardware for AI advancement. This competition led to a significant drop in Nvidia’s stock in January. Furthermore, Nvidia reported losing out on $2.5 billion in potential revenue for the fiscal quarter ending in April due to export restrictions imposed on its H20 AI chips to China. Shares plummeted by as much as 37% from January to April, as the company navigated market fears and ongoing US-China trade tensions.
Recently, Nvidia’s stock rebounded, gaining nearly 74% since early April. Huang remains optimistic about the future, asserting that AI will be essential across all countries and industries. He stated, “AI is this incredible technology that’s going to transform every industry, from software to health care, financial services, retail, transportation, and manufacturing. And we’re at the beginning of that.”
Wall Street analysts are projecting continued growth for Nvidia. In a June research note, analysts from investment firm Loop Capital estimated that the company could achieve a market capitalization of $6 trillion by 2028. Loop Capital’s analysts argued that while this projection may seem ambitious, Nvidia’s dominant position in critical AI technology supports its potential for sustained growth.
This significant milestone for Nvidia underscores the company’s influential role in the technology sector and its impact on the future of AI development.
