Nvidia made history on Wednesday by becoming the world’s first publicly traded company to reach a staggering $4 trillion market valuation, underscoring Wall Street’s unwavering confidence in the artificial intelligence revolution.
The chipmaker’s shares surged as much as 2.5% to a record $164, fueled by relentless demand for its high-performance AI processors.
The milestone caps a meteoric rise for Nvidia, which first crossed the $1 trillion mark in June 2023 before tripling its value in just over a year—outpacing tech giants Apple and Microsoft, the only other U.S. firms above the $3 trillion threshold. Nvidia’s rebound from an April slump, when global markets were rattled by trade tensions, has been remarkable, with shares climbing roughly 74% since then.
“Nvidia has evolved from a gaming and crypto-mining chipmaker to the undisputed leader in AI computing power,” said Art Hogan, chief market strategist at B. Riley Wealth. “It’s the clear early winner in this transformative era.”
The company’s dominance is staggering—its market value now eclipses the combined worth of Canada’s and Mexico’s stock markets and surpasses all publicly listed companies in the U.K. With a 7.3% weighting on the S&P 500, Nvidia holds more influence than Apple (7%) or Microsoft (6%).
Despite its sky-high valuation, Nvidia trades at a forward P/E ratio of 32, below its three-year average of 37, suggesting room for further growth. The firm reported a 69% revenue jump to $44.1 billion in Q1, with profits hitting $0.81 per share. For Q2, it forecasts revenue of $45 billion (±2%), with earnings due August 27.
As the AI race accelerates, Nvidia’s chips remain indispensable, powering data centers and large language models worldwide. With shares up 22% this year—outperforming the Philadelphia Semiconductor Index’s 15% gain—the company shows no signs of slowing its relentless ascent.
