Nvidia has officially become the first company in history to surpass a $4 trillion market valuation, a feat fueled largely by its leadership in the artificial intelligence sector.
The U.S.-based semiconductor powerhouse overtook tech titans Microsoft and Apple to claim the top spot, as its share price surged to a new peak on Wednesday.
Stock prices climbed by roughly 2% in early trading, hitting a record $164.32 before settling at $163.36 after the market closed, according to Google Finance data.
This bullish momentum, sparked by investor optimism around AI’s massive growth potential, briefly lifted Nvidia’s total valuation above $4 trillion. Based on its 24.4 billion shares outstanding, the after-hours price places the market cap slightly lower at $3.98 trillion.
AI: The Engine Behind Nvidia’s Rise
Nvidia’s explosive growth reflects a broader shift in tech investment priorities, with capital increasingly flowing toward AI development. “Companies are reallocating resources toward artificial intelligence—it’s clearly the direction the industry is heading,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, in a comment to Reuters.
Once focused mainly on gaming GPUs, and later crypto mining hardware, Nvidia has now positioned itself as a leader in AI computing chips. Art Hogan, chief market strategist at B Riley Wealth, told USA Today: “They’ve established themselves as a frontrunner in the AI race and continue to evolve at pace.”
From Setbacks to Soaring Profits
Earlier this year, Nvidia faced headwinds including export restrictions and competition from Chinese AI firms, leading to a brief $600 billion market cap drop and a $5.5 billion loss in valuation. But the company bounced back rapidly.
In Q1 2025, Nvidia posted $44 billion in revenue and $19 billion in net income—up 26% year-over-year—demonstrating strong financial resilience. Its stock is up over 21% year-to-date, far outpacing the S&P 500’s 6.5% gain over the same period.
Dominating the Market Cap Leaderboard
Nvidia now leads the global market cap rankings, with Microsoft trailing at $3.74 trillion and Apple in third at $3.15 trillion, according to CompaniesMarketCap. These three remain the only firms above the $3 trillion threshold.
For comparison, Bitcoin reached a new all-time high of $112,644 on Wednesday, pushing its total market cap to $2.2 trillion. The entire cryptocurrency market combined stands at $3.53 trillion—still shy of Nvidia’s solo valuation.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
