NVIDIA becomes first company to hit $4 trillion market value

NVIDIA becomes first company to hit $4 trillion market value

NVIDIA Corporation (NVDA) has made history by becoming the first publicly traded company to achieve a $4 trillion U.S. market capitalization. As of July 2, 2025, NVIDIA's stock price reached a record high, surpassing Microsoft to reclaim its position as the world's most valuable company. This milestone is a testament to the company's dominance in the artificial intelligence (AI) sector and the growing demand for its specialized chips.

NVIDIA's stock has been on a remarkable upward trajectory, rebounding sharply since early April when global trade tensions led to a temporary market dip. The company's market capitalization has grown from approximately $500 billion in 2021 to nearly $4 trillion today, driven primarily by the AI boom. Analysts predict that NVIDIA could break the $4 trillion mark in the coming months, with some forecasting a $5 trillion valuation within the next 18 months [1].

The surge in NVIDIA's stock price is largely attributed to the company's exceptional stock performance. CEO Jensen Huang, who holds roughly 3% of the company, has seen his net worth surge to $137.4 billion, making him the ninth richest person globally [1]. This growth has been fueled by the relentless demand for NVIDIA's cutting-edge AI chips, which are central to training the largest and most advanced AI models used in data centers by leading tech companies such as Microsoft, Alphabet, Meta, and Amazon [2].

Despite the record growth, some market watchers have expressed skepticism about the sustainability of the AI boom. Jim Chanos, a noted short seller, has compared the current surge to the dot-com bubble, warning that capital expenditures could be quickly slashed if confidence fades. However, NVIDIA continues to outperform, now comprising 7% of the S&P 500 index and representing 28% of the benchmark along with Apple, Microsoft, Alphabet, and Amazon [2].

NVIDIA's $3.92 trillion valuation exceeds the combined market cap of all publicly traded firms in Canada and Mexico and even surpasses that of the entire United Kingdom's stock market. The company's transformation from a gaming chipmaker to an AI infrastructure titan has solidified its place at the heart of today's technology revolution [2].

References:
[1] https://www.fxleaders.com/news/2025/07/02/nvidia-surpasses-microsoft-to-reclaim-title-as-worlds-most-valuable-company/
[2] https://coincentral.com/nvidia-corporation-nvda-stock-nears-4-trillion-mark-becomes-worlds-most-valuable-company-as-ai-surge-drives-historic-rally/