Nvidia Becomes First Public Company to Hit $4 Trillion Valuation

Nvidia has made history by becoming the first publicly listed company to reach a market value of $4 trillion. On Wednesday, its stock rose 2.4% to $164, as investors continued to bet on the company’s dominance in artificial intelligence.

The company’s chips and software are leading the way in powering AI tools. Experts widely agree that Nvidia offers the best technology in the field right now. The company’s growth reflects the skyrocketing demand for AI products, making it one of the most profitable firms globally.

Nvidia first hit the $1 trillion mark in June 2023. Since then, its market value has more than tripled within a year—a faster climb than tech giants Apple and Microsoft.

Racing Past Tech Giants

Apple was the first company to reach a $3 trillion valuation. Microsoft followed, and now stands at around $3.75 trillion. However, Nvidia’s rise has outpaced them both. Today, its value equals 7.3% of the entire S&P 500 index, while Apple makes up about 7%, and Microsoft accounts for 6%.

Tariffs Couldn’t Slow It Down

Earlier this year, Nvidia stocks dipped when President Donald Trump introduced new tariffs. The measures raised concerns over restrictions on chip sales to China, which is a key market for Nvidia. If fully enforced, the export controls would stop the company from selling its most advanced chips to China.

Still, the company staged a strong comeback. Since its April low, Nvidia shares have jumped 74%. Many investors believe the US and China may strike a trade deal, which helped push the S&P 500 to a record high.

Experts Predict More Tech Giants to Join

Daniel Ives, a tech analyst at Wedbush, explained that Nvidia and Microsoft are "the poster children for the AI revolution" and form the foundation for what he calls “the biggest tech trend we have seen in our 25 years covering tech stocks on the Street.” He believes Microsoft will likely join Nvidia in the $4 trillion club “this summer.”

Looking ahead, Ives added, “Over the next 18 months the focus will be on the $5tn … as this tech bull market is still early being led by the AI revolution.”