Nvidia reached a remarkable market capitalization of $4 trillion on Wednesday, marking it as the first public company to hit this milestone and further establishing its status as a favorite on Wall Street.
The chip maker’s stock climbed 2.5%, reaching a peak of $164, propelled by a spike in demand for artificial intelligence technology.
This recent stock surge comes amid a late-start rally this year, particularly influenced by uncertainty spurred by China’s entry with a discounted AI model from Deepseek, which had previously shaken confidence in related stocks.
Nvidia had first crossed the $1 trillion market value threshold in June 2023, achieving this faster than other major US companies, like Apple and Microsoft, which have market values of $3 trillion or more.
Currently, Microsoft stands as the second-largest US company with a valuation of $3.75 trillion, seeing its shares climb 1.3% to $503.
From its April low, Nvidia has bounced back about 74%, recovering from a period of turbulence created by tariffs from President Trump.
Optimism around impending trade deals has recently driven the S&P 500 to an all-time high.
Nvidia represents 7.3% of the S&P 500 index, while tech giants Apple and Microsoft contribute around 7% and 6%, respectively.
According to LSEG data, Nvidia’s value surpasses the combined worth of the Canadian and Mexican stock markets and exceeds that of all publicly listed firms in the UK.
The trading data indicates that Nvidia’s stock trading rate falls below the historical average of 37 years over the past 32 years.
The soaring market value reflects Wall Street’s faith in the rapid growth of artificial intelligence, given that Nvidia’s chips are essential to this sector’s advancement.
In the first quarter, the company reported revenues of $44.1 billion, a remarkable increase of 69%, along with earnings of 81 cents per share compared to a year prior.
For the upcoming second quarter, NVIDIA anticipates revenues of about $45 billion, give or take 2%. The results for this period will be disclosed on August 27th.
