Nvidia Stock Hits $4 Trillion Milestone, Jensen Huang Heads to China Amid US-China Trade Tensions

Nvidia's stock has reached a $4 trillion market capitalization, surpassing Microsoft and Apple. Despite losing billions in quarterly revenue in China due to export restrictions, Nvidia's CEO Jensen Huang is headed to China for a media briefing. The visit is significant as China was Nvidia's second-biggest market, and the company is assuming zero revenues from China AI chip sales currently. Huang believes Chinese competitors are behind Nvidia in AI chip efficiency, but China can capitalize on lower power prices.

Nvidia Corporation (NVDA) has achieved a significant milestone, becoming the first company to surpass a $4 trillion market capitalization. The chipmaker's stock surged on Wednesday, July 9, 2025, briefly pushing the company's market cap past the $4 trillion mark before closing the day at $3.97 trillion. This remarkable feat places Nvidia as the world's most valuable company, surpassing Microsoft and Apple [1].

The surge in Nvidia's market value is primarily driven by the growing demand for AI hardware and chips. The company has positioned itself as a leader in creating graphics processing units (GPUs) that power large language models, such as ChatGPT [2]. Over the past five years, Nvidia's shares have increased more than fifteenfold, with a 15% rise in the last month and a 22% increase since the start of the year [2].

Despite geopolitical tensions and ongoing chip curbs that have hampered sales to China, Nvidia's stock has continued to rise. The company's recent earnings report, expected on August 27, 2025, is anticipated to show an EPS of $0.99, marking a 45.59% rise compared to the same quarter of the previous year [2]. The latest consensus estimate predicts the revenue to be $45.69 billion, indicating a 52.1% increase compared to the same quarter of the previous year. For the full year, analysts are expecting earnings of $4.24 per share and revenue of $197.54 billion, marking changes of +41.81% and +51.37%, respectively, from last year [2].

Nvidia's CEO Jensen Huang is scheduled to hold a media briefing in Beijing on July 16, 2025. This visit is significant as China was Nvidia's second-biggest market, and the company is assuming zero revenues from China AI chip sales currently [3]. Huang believes that Chinese competitors are behind Nvidia in AI chip efficiency but acknowledges that China can capitalize on lower power prices [3].

The semiconductor industry's most consequential game of geopolitical chess is playing out between Nvidia and the U.S.-China trade axis. Recent developments, including CEO Jensen Huang's meeting with President Trump and the subsequent U.S.-China framework agreement, have reignited speculation about whether Nvidia can regain access to China's $50 billion AI chip market [4]. For investors, this is a high-stakes scenario where geopolitical tailwinds could transform volatility into value.

References:
[1] https://www.cnbc.com/2025/07/09/nvidia-4-trillion.html
[2] https://www.ainvest.com/news/nvidia-company-market-capitalization-reaching-4-trillion-2507/
[3] https://www.business-standard.com/technology/tech-news/nvidia-ceo-jensen-huang-to-hold-media-briefing-in-beijing-on-july-16-125071300549_1.html
[4] https://www.ainvest.com/news/nvidia-geopolitical-gamble-diplomacy-unlock-china-50-billion-ai-chip-market-2507/