Nvidia surpasses Apple and Microsoft to emerge as the first public company valued at $4 trillion.

Nvidia Reaches Historic Milestone

Nvidia achieved a market value of $4 trillion on Wednesday, marking it as the first public company to reach such a milestone.

After the market opened, Nvidia’s shares rose by 2.5%, hitting an intraday record that pushed its market value past the $4 trillion mark.

This US chipmaker has experienced remarkable growth this year, with a 22% increase attributed to its significant role in the ongoing artificial intelligence boom.

Nvidia has now surpassed both Apple and Microsoft, both of which had been in a tight contest for the title of the world’s most valuable company. Apple kicked off the year at approximately $3.9 trillion, but its value has dipped in recent months amidst various challenges. In recent times, Nvidia and Microsoft have exchanged positions near the top, and now Nvidia has claimed the $4 trillion milestone.

The company’s chips are essential for the data centers that giants like Microsoft, Amazon, and Google rely on to develop AI models and cloud services. Predictions show that investments in AI will only increase, with global spending on AI infrastructure expected to exceed $200 billion by 2028, as per market research firms.

Nvidia reported a revenue of $44.1 billion for the quarter that concluded in April, a remarkable increase of 69% compared to the same time last year.

Dan Ives, an analyst at Wedbush Securities, noted in a research update that “there is one company in the world that is the foundation of the AI revolution and it is Nvidia.”

The company’s graphics processing units are particularly popular among PC gamers, but they are also venturing into new territory with AI models designed to control autonomous robots and vehicles. During their annual developer meeting in March, Nvidia unveiled an updated chip called Blackwell Ultra, which has garnered attention.

Nvidia previously reached the $1 trillion valuation in May 2023, illustrating the rapid escalation of its market presence.

CEO Jensen Huang has been thrust into the spotlight amid the AI rush, becoming well-known even outside the tech scene.

Huang met with the President and was part of the group of prominent tech leaders who accompanied him on a trip to Saudi Arabia in May. Nvidia is also involved in a $500 billion AI infrastructure initiative known as Project Stargate, launched by the Trump administration earlier this year.

However, the road hasn’t been completely smooth. Earlier this year, a Chinese startup named Deepseek introduced powerful yet affordable AI models, casting doubt on whether Nvidia’s expensive chips would remain necessary for future advancements and affecting Nvidia’s stock.

The company also found itself caught in the competitive landscape of AI between Washington and Beijing, reporting a loss of $2.5 billion in potential revenue for the quarter that ended in April due to restrictions on exports of H20 AI chips to China.

Despite these challenges, Huang remains optimistic about the future. In a revenue call in May, he stated that AI would be essential across “all countries” and “all industries.”

“We know that AI is this incredible technology that changes every industry, from software to healthcare and financial services, to transportation and manufacturing,” he remarked. “And we’re just at the beginning.”