Nvidia Hits $4 Trillion Market Value Amid AI Boom and Strong Demand

Nvidia has become the world's first $4 trillion company, driven by its dominance in the AI chip market. Shares rose 2% in early trading, beating Apple's $3.9 trillion record. Nvidia's biggest customers, including Microsoft and Amazon, are projected to spend over £250 billion on AI, fueling the company's growth. Founded three decades ago, Nvidia has become the biggest beneficiary of the tech boom, with founder Jensen Huang holding a 3.8% stake worth over £110 billion.

Title: Nvidia Becomes the World's First $4 Trillion Company

Nvidia has achieved a historic milestone by becoming the world's first publicly traded company to surpass a $4 trillion market capitalization. The company's stock price surged to an all-time high of $164.42 during intraday trading on July 9, 2025. This significant achievement underscores Nvidia's dominance in the artificial intelligence (AI) chip market and its pivotal role in the tech boom.

The company's stock has soared by approximately 1,460% over the past five years, with a near 18% gain registered year-to-date. This remarkable performance is driven by Nvidia's near-monopoly on AI chip manufacturing, with its graphics processing units (GPUs) forming the backbone of machine learning, data centers, and large language models. Tech giants such as Microsoft, Amazon, Meta, and Alphabet are among Nvidia's biggest customers, with projections indicating they will spend over £250 billion on AI, further fueling the company's growth.

Founded three decades ago, Nvidia has become the biggest beneficiary of the tech boom. The company's co-founder and CEO, Jensen Huang, owns about 3.8% of Nvidia, making him the largest individual shareholder. As of July 2025, Huang's net worth is estimated by Bloomberg to be over £110 billion, closely tracking the company's stock performance. This surge in Huang's wealth places him among the world's 10 richest individuals.

Nvidia's market capitalization now exceeds that of Apple and Microsoft, which have market values of $3.9 trillion and $3.74 trillion, respectively. The company accounts for 7.3% of the S&P 500, making it the most heavily weighted stock in the index. The milestone has fueled optimism for further growth, with some analysts projecting Nvidia's market cap to keep rising.

Nvidia's recent financial results highlight its strategic brilliance and dominance in the semiconductor industry. The company's data center revenue surged to a record $26.3 billion in Q2 2025, accounting for 88% of total revenue. This explosive growth positions Nvidia as a prime candidate to join the $1 trillion market cap club, a milestone that hinges on its ability to capitalize on AI-driven demand across industries.

The company's competitive advantage lies in its ecosystem, including its GPU architecture and AI software stack, which create a flywheel effect. Over 150 companies are now integrating Nvidia's AI software tools into their platforms, slashing costs and latency while expanding use cases. The company's software-first strategy creates switching costs, making it difficult for competitors to capture market share.

Nvidia's stock has demonstrated resilience following significant earnings beats. A backtest of its performance since 2022 shows that periods following earnings surprises yielded a final return of 7.33%, with a 70% win rate at the 30-day mark. This underscores the market's consistent positive reaction to Nvidia's outperformance, reinforcing its long-term growth narrative.

As the AI revolution accelerates, Nvidia isn't just keeping pace—it's writing the rules. The company's dominant position in the AI chip market, coupled with its strong financial performance and innovative technology, positions it as a core holding for investors betting on AI's transformative potential.

References:
[1] https://finance.yahoo.com/news/nvidia-becomes-first-company-clinch-134313143.html
[2] https://www.ainvest.com/news/nvidia-1-trillion-ambition-riding-ai-tsunami-dominance-semiconductors-2507/
[3] https://fortune.com/2025/07/09/nvidia-4-trillion-market-cap-what-is-jensen-huang-net-worth/