Nvidia Surpasses $4 Trillion Market Valuation, Setting New Record

Nvidia has surpassed $4 trillion in market valuation, the first company to do so. The chipmaker has achieved this milestone, driven by strong demand for its graphics chips and artificial intelligence technologies. Nvidia's market value has grown significantly over the past year, making it one of the most valuable companies in the world.

Nvidia (NASDAQ:NVDA) has made history by surpassing the $4 trillion mark in market valuation, becoming the first company to achieve this milestone. The chipmaker's stock rose about 2% to $164 on Wednesday, pushing its market value past the $4 trillion threshold for the first time ever [1].

Nvidia's remarkable growth is driven by strong demand for its graphics processing units (GPUs) and artificial intelligence (AI) technologies. The company's GPUs are central to training and running AI models like ChatGPT, making them highly coveted in the tech industry [1]. Tech analyst Dan Ives of Wedbush Securities described Nvidia's achievement as a historic moment, reflecting the company's unique position in the AI ecosystem [1].

Nvidia's rise has outpaced its rivals, such as AMD, whose competition once centered on gaming graphics. Today, Nvidia's growth is driven by data center and enterprise clients expanding AI workloads [1]. Despite April's tariff jitters, Nvidia's revenue jumped 69% year-over-year to $44.1 billion in the first quarter, with earnings per share (EPS) of $0.81 [1].

Nvidia's market value has grown significantly over the past year, making it one of the most valuable companies in the world. The company's stock briefly reached a market capitalization of $4 trillion on Wednesday, making it the first company to reach this milestone and solidifying its position as one of Wall Street's most-favored stocks [2]. The stock's recent rally follows a sluggish start to the year, when the emergence of a Chinese discount AI model developed by DeepSeek shook confidence in stocks linked to the sector [2].

Nvidia has rebounded about 74% from its lows in April, when global markets were jolted by U.S. President Donald Trump's tariff volley. Optimism around trade partners reaching deals with the U.S. has lifted stocks of late, with the S&P 500 hitting an all-time high [2]. Nvidia accounts for 7.3% of the S&P 500, making it one of the index's largest components [2].

Nvidia's soaring market value underscores Wall Street's confidence in the rapid growth of AI, with the company's high-performance chips forming the backbone of this technological advance [2]. The company's stock recently traded at a 12-month forward price-to-earnings ratio of 32, below its three-year average of 37 [2].

While Nvidia's chips dominate the AI industry, Amazon, Microsoft, Alphabet, and other major customers have faced pressure from investors to rein in their heavy spending on AI. As well, Advanced Micro Devices and other rivals aim to take some of Nvidia's market share by selling lower-cost processors [2].

Nvidia reported total revenue of $44.1 billion in the first quarter, marking a 69% jump from a year ago. For the second quarter, Nvidia expects revenue of $45 billion, plus or minus 2% [2]. The company will report second-quarter results on August 27.

References:
[1] https://ca.finance.yahoo.com/news/breaking-nvidia-nvda-made-history-195406770.html
[2] https://finance.yahoo.com/news/nvidia-becomes-first-company-clinch-134313143.html