SANTA CLARA, Calif. (Diya TV) — Chipmaker Nvidia has become the first public company to reach a $4 trillion market value, marking a historic moment in the tech industry. The milestone, hit Wednesday, comes after a two-year surge fueled by the rapid growth of artificial intelligence.
Shares of Nvidia rose 2.5% in early trading to an all-time high of $164. The company’s stock has skyrocketed since the beginning of 2023, when it traded near $14. In just over a year, the company has tripled its value from $1 trillion in June 2023 to $3 trillion by June 2024, and now $4 trillion.
Nvidia’s rise is driven by booming demand for artificial intelligence. The company makes specialized chips called graphics processing units, or GPUs, which power AI tools like ChatGPT and Google’s Gemini. These chips can handle AI tasks much faster than traditional CPUs, giving Nvidia an edge in the race to lead the AI revolution.
CEO Jensen Huang has called AI “the next industrial revolution.” Nvidia’s chips are now central to tech advances like self-driving cars, generative AI, and real-time data processing.
As companies invest billions in AI, they are buying Nvidia chips in bulk. Tech giants such as Microsoft, Google, Amazon, and Apple rely heavily on Nvidia’s technology to expand their AI capabilities.
Nvidia’s growth has outpaced major tech companies. It has surpassed Apple, Microsoft, Amazon, and Google-parent Alphabet in market value. Nvidia now holds the largest weight on the S&P 500 index at 7.3%, ahead of Apple’s 7% and Microsoft’s 6%.
Microsoft remains the second-largest U.S. company with a $3.75 trillion market value. But Nvidia’s rapid rise has put it in a league of its own. Its value is greater than the combined worth of all public companies in the United Kingdom and exceeds the total market value of Canada and Mexico.
In its most recent quarter, Nvidia posted a profit of $18.8 billion, with revenue up 69% to $44.1 billion. Despite facing tariff-related challenges, the company delivered record growth. Wall Street expects Nvidia to report even stronger results in its second quarter, with projected revenue of $45 billion. Nvidia will release its Q2 earnings on August 27.
Nvidia shares have climbed more than 22% this year, beating the nearly 15% rise of the Philadelphia Semiconductor Index. The stock has rebounded 74% since its April low, when markets reacted to tariff tensions under President Donald Trump.
Optimism about trade negotiations has helped boost U.S. markets. The S&P 500 continues to hit record highs, thanks in part to Nvidia and other AI-driven stocks.
Nvidia’s shares now trade at a 12-month forward price-to-earnings ratio of 32, which is below its three-year average of 37, according to LSEG data. This suggests investors still see strong value in the stock despite its sharp rise.
The company’s explosive growth highlights Wall Street’s belief in AI’s potential. Nvidia’s GPUs remain the backbone of AI infrastructure, and investors expect the trend to continue.
While the AI sector faces growing competition — including from new models developed in China — Nvidia has retained its leadership with cutting-edge chips and strong partnerships.
Nvidia’s $4 trillion market cap cements its place in history. No other public company has reached this level of value before. The achievement underscores how essential AI has become to the global economy.
