Chipmaker Nvidia made history on Wednesday by becoming the first publicly traded company to cross a $4 trillion market valuation. The company’s shares jumped 2.4% to reach $164, driven by an unrelenting surge in demand for artificial intelligence technologies.
Nvidia’s powerful chips and associated software are considered the industry gold standard for building AI products, fueling its meteoric rise. The company first crossed the $1 trillion mark in June 2023, and in just over a year, it has tripled its market worth—outpacing tech giants like Apple and Microsoft.
Faster Growth Than Apple and Microsoft
Apple was the first company to touch a $3 trillion valuation, while Microsoft now follows closely behind with a $3.75 trillion market cap. However, Nvidia’s rise has been so dramatic that it now makes up 7.3% of the entire S&P 500 index, compared to Apple’s 7% and Microsoft’s 6%.
Tariffs Fail to Halt Nvidia’s Ascent
Even geopolitical tensions haven’t derailed Nvidia’s upward momentum. In April, the company faced a 74% rebound from a temporary dip due to reciprocal tariffs introduced by US President Donald Trump, which restricted the sale of its most advanced chips to China. Nvidia has been lobbying against these export controls.
Despite this, optimism around a potential US-China trade agreement has fueled further investor confidence. The S&P 500 recently reached an all-time high, further validating the tech bull run.
Analyst Predicts More Giants to Join the $4T Club
Wedbush tech analyst Daniel Ives told The Guardian that Nvidia and Microsoft are leading the AI wave and called them the “poster children for the AI revolution.” He added, “This is the biggest tech trend we have seen in our 25 years covering tech stocks on the Street.”
According to Ives, Microsoft may reach the $4 trillion valuation “this summer,” with a long-term focus shifting toward the $5 trillion milestone “as this tech bull market is still early being led by the AI revolution.”