Chipmaker Nvidia becomes the first $4 Trillion publicly traded company powered by its booming AI business
Nvidia Corporation made history today, becoming the first publicly traded company to surpass a $4 trillion market capitalization. The milestone was reached during intraday trading when the chipmaker’s share price surged to $164.42, briefly pushing its valuation beyond the unprecedented threshold. This achievement cements Nvidia’s position as the world’s most valuable company, outpacing tech giants like Microsoft, Apple, Amazon, and Google parent Alphabet, and underscores its pivotal role in the artificial intelligence (AI) revolution.
Nvidia’s meteoric rise has been driven by its dominance in the AI chip market, particularly its graphics processing units (GPUs), which power the data centres fuelling advanced AI models and cloud services. The company’s stock soared approximately 2.5% in early trading today, closing at $164.32, with a market cap hovering just above $4 trillion. This marks a staggering 1,460% increase in stock value over the past five years, with a year-to-date gain of nearly 22% in 2025 alone.
Nvidia’s ascent to a $4 trillion valuation is a testament to the transformative power of AI, which CEO Jensen Huang has dubbed “the next industrial revolution.” Originally known for its GPUs tailored for PC gaming, Nvidia capitalised on the discovery that these chips are ideally suited for the complex computations required by AI, including large language models like ChatGPT and Google’s Gemini. This strategic pivot has positioned Nvidia as the backbone of the AI infrastructure, with its chips in high demand by tech giants such as Microsoft, Amazon, Meta, and Alphabet, as well as emerging AI players like OpenAI and Tesla.
The company reported $44.1 billion in revenue for the fiscal quarter ending April 2025, a 69% increase from the same period last year, and a net income of $18.78 billion, up 26%. Nvidia’s data centre business, which supplies AI chips, has been the primary driver of this growth, with revenue surging 73% year-on-year. “There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia,” wrote Wedbush Securities analyst Dan Ives in a June 27 research note.
Global spending on AI infrastructure is projected to exceed $200 billion by 2028, according to the International Data Corporation, further bolstering Nvidia’s growth prospects. The company’s next-generation Blackwell chips, including the recently announced Blackwell Ultra, are expected to power the next wave of AI adoption, supporting models with advanced reasoning capabilities.
Despite its dominance, Nvidia has faced challenges. U.S. trade restrictions on advanced semiconductor exports to China have impacted sales, with the company reporting a $2.5 billion revenue shortfall in the first quarter of 2025 due to these limitations. Additionally, a $4.5 billion charge was absorbed to account for further restrictions, reducing Nvidia’s sales in China from 21% of total revenue two years ago to 13% today.
Competition is also emerging, with companies like AMD and Intel developing rival AI chips, and tech firms such as Amazon and OpenAI exploring custom chip designs. Google’s use of its own tensor processing units (TPUs) poses another potential threat. Earlier this year, concerns over a low-cost Chinese AI model DeepSeek triggered a 37% drop in Nvidia’s stock from January to April, though it has since rebounded by nearly 74%.
Nvidia’s journey to $4 trillion has been remarkably swift. The company reached a $1 trillion valuation in May 2023, $2 trillion in February 2024, and $3 trillion in June 2024, outpacing all competitors. “This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth,” said Ives, who predicts Microsoft may also cross the $4 trillion threshold this summer.
Analysts remain bullish on Nvidia’s future, with Loop Capital projecting a potential $6 trillion valuation by 2028, citing the company’s “near-monopoly” on critical AI technology. “Nvidia remains essentially a monopoly for critical tech, and it has pricing and margin power,” wrote Loop analysts Ananda Baruah and Alek Valero. Wedbush estimates that every $1 spent on Nvidia’s chips generates an $8–$10 ripple effect across the tech ecosystem.
Nvidia’s success has also elevated CEO Jensen Huang to global prominence. With a net worth of $140 billion, Huang ranks as the tenth wealthiest person worldwide, according to the Bloomberg Billionaires Index. His high-profile engagements, including meetings with President Donald Trump and international leaders, have further amplified his influence.
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