Nvidia Sets Record with $4 Trillion Market Cap Milestone
Nvidia made history on Wednesday, becoming the first publicly traded company to reach a $4 trillion market capitalization. This marks a significant milestone in the artificial intelligence boom. The chipmaker’s shares rose 2.8% to $164.42 during intraday trading, securing its position as the world’s most valuable company ahead of Microsoft’s $3.75 trillion valuation.
Earlier this year, Nvidia faced significant challenges when Chinese AI startup DeepSeek raised questions about the necessity of expensive AI chips. The stock tumbled as much as 37% from January to April before rallying back to record highs, showcasing a remarkable recovery.
CEO Jensen Huang has emphasized the massive demand for the company’s new Blackwell chips, which are 40 times more powerful than the popular Hopper chips. Wall Street analysts remain bullish, with Loop Capital estimating Nvidia could reach a $6 trillion market cap by 2028. They refer to it as “essentially a monopoly for critical tech” in the AI sector.
- The company achieved its first $1 trillion valuation in May 2023.
- It tripled that milestone in about a year, moving faster than tech giants Apple and Microsoft.
This rapid growth reflects the continuing surge in demand for AI infrastructure. Companies worldwide are investing heavily in generative AI capabilities.