Nvidia Reaches $4 Trillion Market Cap, Solidifying Position as Most Favored Stock

Nvidia has surpassed a market value of $4 trillion, becoming the first publicly traded company to reach this milestone. The chip manufacturer's stock rose 2.4% to $164, benefiting from continued demand for artificial intelligence technologies. Nvidia's market value has more than tripled in about a year, outpacing Apple and Microsoft, the only other US companies with a market value of over $3 trillion.

Nvidia (NASDAQ:NVDA) made history on Wednesday, July 9, as its stock rose approximately 2% to $164, pushing its market value past the $4 trillion mark for the first time ever. This milestone underscores investor confidence in the company's chips that power generative AI, a significant driver of technology spending [1].

Nvidia's rise has been rapid, with the company first hitting a $1 trillion valuation in June 2023 and climbing rapidly on booming demand for its graphics processing units (GPUs). These GPUs are now central to training and running AI models like ChatGPT. Tech analyst Dan Ives of Wedbush Securities described the achievement as a historic moment, highlighting Nvidia's unique position in the AI ecosystem [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. The company's performance signals strong momentum as AI continues to be a key driver of technology spending [1].

Nvidia's growth has outpaced 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. While Nvidia faces competition from other GPU makers and custom chip designs, its proprietary software, CUDA, and better scaling solutions maintain its market leadership [2].

The competition is catching up to Nvidia, with AMD showcasing new chips that aim to challenge Nvidia's dominance. AMD's MI400 chips, set to arrive in 2026, offer a "rack-scale" system that could provide better price performance than Nvidia's solutions. Additionally, major tech companies like Meta, Microsoft, Alphabet's Google, and Amazon are developing custom silicon designs that could further challenge Nvidia's position [2].

However, Nvidia's market leadership is bolstered by its strategic position in the AI infrastructure market. Taiwan Semiconductor Manufacturing (TSMC), the dominant semiconductor fabricator, is set to see its AI-related revenue more than triple from 2025 through 2027. TSMC's leading technology and scale make it the preferred manufacturer for AI chips, including those from Nvidia, AMD, and other major players [2].

Despite the competition, Nvidia's stock remains a strong performer, benefiting from its market leadership and continued demand for AI technologies. The company's market value has more than tripled in about a year, outpacing Apple and Microsoft, the only other US companies with a market value of over $3 trillion [1].

References:
[1] https://ca.finance.yahoo.com/news/breaking-nvidia-nvda-made-history-195406770.html
[2] https://www.fool.com/investing/2025/07/08/predict-artificial-intelligence-ai-chip-nvidia/