Nvidia briefly became the first publicly traded company to reach a USD 4.0 trillion market capitalization globally. On Wednesday, the chipmaker’s shares surged as much as 2.76% during intraday trading, pushing its valuation past the historic mark before closing 1.8% just under USD 4.0 trillion mark. This latest milestone highlights Nvidia’s meteoric rise in recent years. In May 2023, the company crossed the USD 1.0 trillion valuation threshold.
Nvidia now sits ahead of tech giants Apple and Microsoft in the race for market dominance. Apple, which started the year valued at around USD 3.9 trillion, has seen its share price decline due to the economic uncertainty linked to President Donald Trump’s renewed tariff pressures. Microsoft and Nvidia have traded places at the top in recent months, but Nvidia’s recent rally gave it the edge in hitting the USD 4.0 trillion mark first.
Nvidia’s remarkable growth is tied directly to its dominance in the AI chip market. Its graphics processing units (GPUs), originally designed for gaming, have become the gold standard for training and running AI models. Global giant’s technology firms such as Microsoft, Google, and Amazon depend on Nvidia’s chips to power their data centers and cloud services that underpin generative AI systems like ChatGPT.
The International Data Corporation research experts expect AI infrastructure spending to surpass USD 200.0 billion by 2028, a trend that strongly favours Nvidia’s continued expansion. The company’s most recent financial results indicate that the revenue for the quarter ending in April reached USD 44.1 billion, a 69.0% year on year increase, with USD 39.1 billion coming from its data center business.
Despite its dominant market position, Nvidia’s rise has not been without challenges. Earlier this year, Chinese AI start-up DeepSeek rattled global markets with a powerful and allegedly low-cost AI model. This development raised doubts about the need for expensive chips, causing Nvidia’s stock to plunge by as much as 37.0% from January to April. Additionally, Nvidia has faced headwinds from U.S.-China trade tensions. The company disclosed it missed out on USD 2.5 billion in revenue for the first quarter in 2025 due to new export restrictions on its H20 AI chips to China.
Nonetheless, the company has rebounded strongly its stock has gained nearly 74% since April, driven by investor confidence in its technological leadership and strategic vision. Analysts remain bullish on Nvidia’s prospects. Loop Capital projects that the company’s market cap could reach USD 6.0 trillion by 2028, citing its near-monopoly in critical technologies.
