Nvidia becomes first company to clinch $4 trillion in market value

Historic Milestone Driven by AI Surge

Nvidia has made history by becoming the first public company in the world to achieve a market capitalization of $4 trillion. The milestone was reached on Wednesday, as shares of the AI chipmaker rose as much as 2.4% to $164, reflecting Wall Street's immense enthusiasm for artificial intelligence technologies and the ongoing demand for advanced AI chips[2][1].

Key Highlights

  • Nvidia shares climbed to an intraday high of $164.42, driving its total market value past $4 trillion for the first time[2][1].
  • The stock has surged 22% year-to-date, cementing Nvidia’s status as a market leader in AI hardware[1].
  • Since the launch of ChatGPT in November 2022, Nvidia’s shares have soared over 900%, illustrating the insatiable appetite for AI advancements among investors[1].

Resilience Amid Volatility

The company achieved this landmark despite recent market turbulence. Earlier in the year, Nvidia’s stock experienced a drop of as much as 31% due to factors such as selling pressure, new tariffs from President Donald Trump, and emerging competition in the AI sector, notably from DeepSeek—a Chinese startup attempting to build chatbots with lower-grade Nvidia chips[1].

AI Chips Powering the Boom

Nvidia’s position as the designer of the world’s leading high-end AI chips has been central to its meteoric rise. Its technology is crucial for powering systems that run large language models, such as ChatGPT, and supporting rapidly growing investments in artificial intelligence across sectors[2][1].

Market Impact

  • Nvidia’s $4 trillion valuation re-confirms its spot as the most valuable company globally and underscores the fundamental role of advanced AI chips in the digital economy[1][2].
  • Analysts see Nvidia’s rise as evidence of the enduring and transformative power of AI innovation on financial markets and technology at large[1][2].

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