Nvidia becomes world’s first $4 trillion company

Nvidia has made history by becoming the first company globally to achieve a market valuation of $4 trillion.

The chip-maker’s shares surged by 2.4% to $164 on Wednesday, driven by the sustained high demand for the technology that underpins artificial intelligence (AI) development.

This milestone marks a rapid ascent for the US-based company, which first reached a $1 trillion market value in June 2023. Tech analyst Dan Ives of Wedbush Securities described it as a “historic moment,” emphasizing Nvidia’s foundational role in the AI revolution. “They are the only game in town with their chips the new gold and oil,” Ives noted.

Nvidia’s share price experienced a dip in April due to concerns over US President Donald Trump’s escalating tariff policies, but has since rebounded strongly to reach this new landmark. The company’s growth trajectory has been remarkable, with its stock value less than 1% of its current price just eight years ago.

Initially, its expansion was fuelled by competition in graphics card development against rival AMD. More recently, the surge has been directly linked to the burgeoning demand for chips essential to generative AI models, such as ChatGPT.

The company’s meteoric rise has also significantly elevated the public profile of its CEO, Jensen Huang (pictured above), who has been likened to “the Taylor Swift of tech” by Mark Zuckerberg, reflecting his celebrity status, particularly in Taiwan.

Nvidia’s continuously increasing valuation underscores Wall Street’s confidence in the future growth of AI, even amidst economic policy uncertainties. In its first quarter, the company reported a total revenue of $44.1 billion, a 69% increase year-over-year, alongside a profit of 81 cents per share.