Nvidia reached a market capitalisation of $4 trillion, becoming the first publicly traded company globally to achieve this milestone, according to Reuters.
The achievement underscores the chip designer’s position as one of Wall Street’s most favoured stocks, propelled by soaring demand for artificial intelligence (AI) technologies. Shares in the company climbed as much as 2.5% on Wednesday to an all-time high of $164.
Nvidia first reached a $1 trillion market value in June 2023 and tripled it in approximately a year, a pace faster than rivals Apple and Microsoft, the only other US firms valued above $3 trillion. Microsoft, the second-largest US company, holds a market capitalisation of $3.75 trillion, with its shares rising 1.3% to $503.
The company’s recent stock rally comes despite a sluggish start to the year when confidence in AI-linked stocks wavered following the emergence of a Chinese artificial intelligence model developed by DeepSeek. Nvidia rebounded impressively, gaining about 74% from its April lows, which were impacted by global market jitters stemming from US President Donald Trump’s tariff announcements.
Strong financial performance
Current optimism, fuelled by expectations of trade deals between the US and its partners, has lifted stocks broadly, with the S&P 500 reaching an all-time high. Nvidia holds significant weight on this key index, accounting for 7.3%, the largest individual component. Apple and Microsoft represent approximately 7% and 6% respectively.
Nvidia’s soaring valuation highlights Wall Street’s confidence in the rapid expansion of artificial intelligence, where its chips serve as foundational technology. The company reported total revenue of $44.1 billion for the first quarter, marking a substantial 69% year-on-year increase, alongside earnings of 81 cents per share.
According to LSEG data, the company is now worth more than the combined value of the Canadian and Mexican stock markets and exceeds the total value of all publicly listed companies in the UK.
