Nvidia Hits $4 Trillion Market Value Amid AI Surge
Nvidia has become the first publicly traded company to reach a $4 trillion market value. Its stock rose by 2.5% on Wednesday, hitting a record high during intraday trading. This surge pushed Nvidia above the milestone, marking a significant moment in the global tech industry.
The US chipmaker has seen its value rise around 20% this year. This growth is due to Nvidia’s strong position in powering the artificial intelligence boom. Nvidia reached this milestone before Apple and Microsoft, two other major players in the tech sector.
Powering the AI Revolution
Nvidia’s chips are central to data centres that support AI models and cloud services. Companies like Microsoft, Google, and Amazon rely on these chips to advance their AI capabilities. As investments in AI continue to grow, the demand for Nvidia’s products is also increasing.
Global spending on AI infrastructure could surpass $200 billion by 2028, according to market research firm The International Data Corporation. Nvidia reported $44.1 billion in revenue for the quarter ending in April, marking a 69% rise from the previous year.
Wedbush Securities analyst Dan Ives described Nvidia as the foundation of the AI revolution. At Computex 2025, Nvidia’s CEO Jensen Huang highlighted the launch of the updated Blackwell Ultra chip, designed to support advanced AI models.
Overcoming Challenges and Looking Ahead
Despite its success, Nvidia has faced challenges. Export restrictions on its H20 AI chips to China cost Nvidia around $2.5 billion in lost revenue for the last quarter. Competition from Chinese startup DeepSeek also led to a temporary drop in Nvidia’s stock earlier this year.
However, Nvidia’s shares have since rebounded, climbing nearly 74% since April. Huang believes the company has a long runway for growth. He has stated that AI will become essential for every country and every industry, transforming sectors from healthcare to retail and manufacturing.
Wall Street analysts predict that Nvidia will continue its upward trend. Loop Capital analysts have estimated that Nvidia could reach a $6 trillion market value by 2028. They noted that Nvidia’s strong position in the AI sector provides it with a clear advantage for future growth.
with inputs from Reuters
