Nvidia Soars to New Heights as First $4 Trillion Company Amid AI Boom

The technological powerhouse Nvidia has achieved a historic milestone, becoming the first company worldwide to reach a market value of $4 trillion. On July 9th, Nvidia's stock saw an impressive surge, exceeding 2.5% during early trading, reaching approximately $164 per share. Since April, Nvidia's stock has soared by nearly 90%, establishing its dominance in the AI chip sector.

Previously, Apple held the record with a market cap of $3.915 trillion at the end of 2024. However, challenges such as unimpressive AI developments and tariffs have impacted Apple's valuation. In contrast, Nvidia has flourished amidst the AI boom, escalating its market value from approximately $500 billion in 2021 to the remarkable $4 trillion mark.

Market enthusiasm for Nvidia is further fueled by the recent easing of certain U.S. export restrictions on chips. The U.S. Department of Commerce recently lifted the requirement for major chip design software providers to secure government licenses for their operations in China. This change may benefit Nvidia by potentially increasing its market access.

In addition to regulatory shifts, market analysts have revised their expectations for Nvidia's stock. Loop Capital, for instance, increased its price target for Nvidia from $175 to $250, equating to a market cap of approximately $6 trillion. Japan's Mizuho Securities raised its price target to $185, citing progress in developing new AI accelerators for the Chinese market.

Despite some skepticism from notable figures like Wall Street short seller Jim Chanos, who liken the current AI fervor to the early 2000s internet bubble, many analysts are optimistic. Wedbush analyst Dan Ives projects that Nvidia's market cap could reach $5 trillion within the next 18 months, driven by substantial AI investments.

Nvidia's progress underscores the growing interest in AI technologies, with massive investments expected to continue supporting this trend. As AI chips become increasingly vital to the next technological phase, Nvidia's leadership is set to maintain its pivotal role in driving innovation and growth within the global tech industry.