Nvidia Becomes First 4 Trillion Company As Ai Demand Explodes

Chipmaker Nvidia became the first public company to top $4 trillion in value Wednesday after a two-year investor frenzy driven by the artificial intelligence boom. Nvidia shares rose 2.5%, in early trading Wednesday, topping $164 each. At the beginning of 2023, Nvidia shares were around $14 each. The company’s rise has been meteoric. Nvidia CEO Jensen Huang attends a round table discussion at the VivaTech fair dedicated to innovation and startups in Paris, Wednesday, June 11, 2025. (Sarah Meyssonnier/Pool via AP)

NVIDIA CEO Jensen Huang delivers his keynote address Wednesday, June 11, 2025 at the Vivatech fair in Paris. (AP Photo/Michel Euler) SAN FRANCISCO (AP) — Silicon Valley chipmaker Nvidia on Wednesday became the first publicly traded company to surpass a $4 trillion market valuation, putting the latest exclamation point on the investor frenzy surrounding an... Although Nvidia’s market value dipped back below $4 trillion by the time the stock market closed, reaching the milestone highlighted the upheaval being unleashed by an AI craze that’s widely viewed as the biggest... Underscoring the changing of the guard, AI bellwether Nvidia is now worth $900 billion more than Apple, which rode the iPhone’s success to become the first publicly traded company to valued at $1 trillion,... (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.)

Download The Economic Times News App to get Daily International News Updates. (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. AI craze makes Nvidia the most valuable publicly traded company in history. On Wednesday, Nvidia became the first company in history to reach $4 trillion market valuation as shares rose more than 2 percent, reports CNBC. The GPU maker’s stock has climbed 22 percent since the start of 2025, continuing a trend driven by demand for AI hardware following ChatGPT’s late 2022 launch.

The milestone marks the highest market cap ever recorded for a publicly traded company, surpassing Apple’s previous record of $3.8 trillion set in December. Nvidia first crossed $2 trillion in February 2024 and reached $3 trillion just four months later in June. The $4 trillion valuation represents a market capitalization larger than the GDP of most countries. As we explained in 2023, Nvidia’s continued success has been intimately tied to growth in demand for hardware that runs AI models as capably and efficiently as possible. The company’s data center GPUs excel at performing billions of matrix multiplications necessary to train and run neural networks due to their parallel architecture—hardware architectures that originated as video game graphics accelerators now power... Companies like OpenAI, Microsoft, and others need tens of thousands of these specialized chips to power services like ChatGPT, AI image generators, and enterprise AI applications.

Meanwhile, Nvidia’s CUDA platform (which makes developing AI applications that use GPUs easier) has become a de facto standard, creating a moat around its hardware ecosystem. When the stock markets opened this morning, Nvidia (NVDA) became the world’s first publicly traded company to reach a market value of $4 trillion, surpassing tech industry giants Apple and Microsoft in reaching the... While Nvidia’s market cap has since dipped to $3.99 trillion as of writing, it is nonetheless an incredible achievement to be the first company to cross the $4 trillion mark. Nvidia’s extraordinary financial success is due in significant part to the company’s commitment to making chips for the AI arms race, a move that helped it reach a $2 trillion valuation — the highest-ever... In the past five years, Nvidia’s stock price has gone from less than $11 per share to over $163 today. Save for a sizable tumble in April this year, which the company has obviously since recovered from, it has been nearly exclusively good news for the American multinational corporation during the AI era.

Nvidia’s revenue eclipsed $130.5 billion in fiscal year 2025, a 114% increase year-over-year, and way above the company’s $26.97 billion revenue in 2023. Nvidia’s rise has been meteoric. Meanwhile, Microsoft, which boasts an impressive $3.75 trillion market cap, has experienced tremendous growth of its own over the past five years. Microsoft’s stock price has risen 290 points, or 136%, in five years. In contrast to many of its peers, Microsoft has also had an excellent 2025 so far, with stock prices rising 20.5% since January 1. However, Microsoft recently laid off about 15,000 employees as part of its AI-focused restructuring in the past two months, so while investors may be loving Microsoft, all is not well at the Redmond-based company.

Nvidia Corp. became the first company in history to achieve a $4 trillion market valuation, cementing its status as a kingpin in the global financial market. Shares jumped 2.8% to $164.42 on Wednesday to crack the milestone, marking a stunning rebound following a rough start to the year, when spending fears sparked by China’s DeepSeek, along with President Donald Trump’s... The stock has risen more than 20% in 2025, and is up more than 1,000% since the beginning of 2023. Nvidia now accounts for 7.5% of the S&P 500 Index, near its highest influence on record. The latest catalyst for the stock has been a commitment to AI spending from Nvidia’s biggest customers, showing that demand for its computing systems remains strong.

(Source: Bloomberg)

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