Nvidia Hits $4 Trillion Market Cap, Surpassing Apple and Microsoft

On July 9, 2025, Nvidia achieved a historic milestone by becoming the first publicly traded company to reach a market capitalization of $4 trillion. The chipmaker’s shares surged over 2.5% intraday, hitting a record price of $164.42 and pushing its valuation beyond this historic threshold. This achievement surpassed tech giants Apple and Microsoft, which had previously held the highest market caps above $3 trillion.

This remarkable growth underscores Nvidia’s dominant position in the rapidly expanding artificial intelligence sector, driven by soaring demand for its AI-focused graphics processing units. Since crossing the $1 trillion mark in mid-2023, Nvidia’s valuation has tripled in just about a year, reflecting its pivotal role in powering AI infrastructure for major companies like Microsoft and Amazon.

To put Nvidia’s scale into perspective, its market cap now exceeds South Korea’s largest company, Samsung Electronics, by more than 13 times and nearly matches the entire GDP of Japan, the world’s fifth-largest economy. The company’s stock has increased tenfold since early 2023 and climbed more than 20% year-to-date, highlighting investor confidence in its AI-driven growth trajectory.

Despite geopolitical challenges and export restrictions affecting sales in China, Nvidia’s CEO Jensen Huang emphasized the company’s robust global demand and long-term growth potential in AI technologies. Nvidia now commands over 7% of the S&P 500 index, the largest share held by any single company in history.

This milestone marks a significant moment not only for Nvidia but also for the broader U.S. technology industry, signaling the transformative impact of AI on the global economy and stock markets. Nvidia's ascent has been particularly notable as it has surpassed Apple in market value, now worth $900 billion more than the tech giant. Apple, which had previously reached market value milestones of $1 trillion, $2 trillion, and $3 trillion, has faced challenges in integrating AI into its products, including the iPhone. The company acknowledged that its AI vision will take until at least next year to fully realize, leading some industry analysts to speculate that Apple may need to acquire an AI startup to regain momentum.

Nvidia, on the other hand, has been working diligently to meet the high demand for its specialized chips, which power the energy-intensive data centers essential for AI operations. Major tech companies such as Microsoft, Amazon, Google parent Alphabet, and Facebook parent Meta Platforms are also increasing their investments in AI, with a significant portion of their $325 billion budget likely to flow into Nvidia's coffers.

The demand for Nvidia's chips has been the primary driver behind the company's stock price increasing tenfold since early 2023, propelling its market value from approximately $400 billion to $4 trillion. After briefly exceeding $4 trillion early Wednesday, Nvidia's shares retreated below that threshold, closing at $162.88. However, most analysts do not expect the stock price to remain below $163 for long. CFRA analyst Angelo Zino issued a research note predicting that the stock will rise to $196 within the next year, pushing Nvidia's market value to $4.8 trillion.

Nvidia's rapid rise has also elevated its founder and CEO, Jensen Huang, to the status of "the godfather" of AI, whose insights on the technology's future attract large audiences. Huang's growing fame has been accompanied by a significant increase in his personal fortune, now estimated at $142 billion. Despite facing challenges such as President Donald Trump's tariffs in early April, which triggered a selloff in the tech sector, Nvidia quickly recovered. In late May, the company reported a stellar quarter with an $18.8 billion profit, despite a $4.5 billion hit due to U.S. government restrictions on the sale of some of its chips to China.

Nvidia is scheduled to release its next quarterly report on August 27, providing further insights into the company's performance and future prospects. The company's achievements and the broader AI revolution it represents continue to captivate the tech industry and investors alike, solidifying Nvidia's position as a leader in the rapidly evolving landscape of artificial intelligence.