Nvidia Makes History as First Company to Reach $4 Trillion Market Value

July 9, 2025 — Nvidia Corporation has achieved a historic milestone, becoming the first publicly traded company in the world to reach a market capitalization of $4 trillion. The Silicon Valley-based chipmaker hit this unprecedented valuation on Wednesday, driven by a surge in demand for its artificial intelligence (AI) technologies, solidifying its position as a titan of the global tech industry.

A Meteoric Rise Fueled by AI

Nvidia’s stock soared as much as 2.8% to an all-time high of $164.42 during trading, briefly pushing its market value past the $4 trillion mark. By the close of the session, shares settled at $162.88, leaving the company with a market capitalization of $3.97 trillion. This remarkable achievement comes just two years after Nvidia first crossed the $1 trillion threshold in June 2023, tripling its value in roughly a year—a pace unmatched by rivals like Apple and Microsoft, the only other U.S. companies with market values exceeding $3 trillion.

The company’s ascent has been propelled by its dominance in the AI sector. Nvidia’s high-performance graphics processing units (GPUs) and CUDA software platform have become the backbone of AI infrastructure, powering data centers for tech giants like Microsoft, Amazon, and Google. The generative AI boom, sparked by the launch of OpenAI’s ChatGPT in late 2022, has fueled unprecedented demand for Nvidia’s chips, which are critical for both training and running large language models.

“Nvidia is sort of the backbone of artificial intelligence infrastructure,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. “It highlights the fact that companies are shifting their asset spend in the direction of AI, and it’s pretty much the future of technology.”

Overcoming Challenges

Nvidia’s journey to $4 trillion was not without hurdles. Earlier in 2025, the company faced a $600 billion market cap drop after China’s DeepSeek introduced its R-1 model, which claimed to train AI using less expensive chips, raising fears that Nvidia’s high-end processors might lose relevance. Additionally, U.S. export restrictions to China cost Nvidia $4.5 billion in its most recent quarter, with an anticipated $8 billion writedown in the current period. Despite these setbacks, Nvidia’s stock has rebounded 74% from its April lows, bolstered by optimism around trade deals and continued AI investment.

The company’s financial performance underscores its resilience. In the first quarter of 2025, Nvidia reported $44.1 billion in revenue, a 69% increase from the previous year, and expects $45 billion for the second quarter. Its chips remain the gold standard for AI training and inferencing, dispelling concerns that less powerful processors could suffice for AI applications.

A New Era for Tech

Nvidia’s $4 trillion valuation surpasses the combined market capitalization of the Canadian and Mexican stock markets and exceeds the total value of all publicly listed companies in the United Kingdom. Its stock, trading at a 12-month forward price-to-earnings ratio of 32, remains below its three-year average of 37, signaling room for further growth.

Analysts are bullish on Nvidia’s future. Loop Capital predicts the company could reach a $6 trillion market cap by 2028, citing its near-monopoly in AI hardware. “Nvidia remains essentially a monopoly for critical tech,” wrote analysts Ananda Baruah and Alek Valero, emphasizing the company’s pricing power and role in the AI revolution. Wedbush analyst Dan Ives called the milestone a “huge historical moment for the U.S. tech sector,” predicting that Microsoft could join Nvidia in the $4 trillion club by mid-2025.

The Road Ahead

Nvidia’s rapid rise has elevated CEO Jensen Huang to one of the world’s richest individuals, with a net worth of $142 billion, according to the Bloomberg Billionaires Index. Huang has emerged as a global figurehead for AI, meeting with world leaders and shaping the industry’s direction. With the upcoming release of Nvidia’s next-generation Blackwell Ultra chips and no major competitors in sight, the company is poised to maintain its dominance.

However, risks remain. Nvidia’s reliance on Taiwan Semiconductor Manufacturing Co. exposes it to geopolitical uncertainties, particularly with U.S. trade policies under President Donald Trump. Additionally, major customers like Amazon, Microsoft, and Meta are developing their own chips to reduce dependency on Nvidia, and the potential rise of quantum computing could disrupt the industry in the coming years.

A Legacy in the Making

From its origins as a gaming-focused chipmaker founded in 1993, Nvidia has transformed into the linchpin of the AI revolution. Its $4 trillion milestone is a testament to the transformative power of AI and the company’s ability to capitalize on a technological paradigm shift. As global AI infrastructure spending is projected to exceed $200 billion by 2028, Nvidia’s role as the “golden child for AI investment” seems secure—for now.

“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,” said Ives.

As Nvidia continues to redefine the boundaries of market value and technological innovation, the world watches to see how high this AI juggernaut can climb.