Nvidia (NVDA) has become the first publicly traded company to surpass a $4 trillion market valuation, cementing its position as the engine behind the artificial intelligence boom and the current bull run in equities.
The chipmaker hit the milestone during intraday trading Wednesday, pushing its stock to $163.35, up nearly 2%, and well above the price needed to secure the record.
This puts Nvidia ahead of tech heavyweights like Microsoft (MSFT) and Apple (AAPL), with the latter currently valued at just over $3.1 trillion. It’s a striking rise for a company that, just two years ago, was valued at slightly more than $1 trillion.
From Graphics to Generative AI
Founded in 1993, Nvidia initially gained traction through its leadership in graphics processing. But the real pivot came with the emergence of generative AI, which requires immense computing power—something Nvidia’s GPUs are uniquely built to handle.
Nvidia’s market value has grown by roughly 1,000% since the beginning of 2023. A $100,000 investment back then would now be worth more than $1.1 million. The company expects to generate $45 billion in revenue for the current quarter, despite an $8 billion revenue hit from U.S. chip export restrictions to China. Analysts now peg Nvidia’s full-year revenue at $200 billion for fiscal 2026—three times what it brought in just two years earlier.
Demand for Nvidia’s AI chips continues to surge, fueled by innovations like reasoning-capable AI models and autonomous AI agents. These technologies, now embedded in tools from OpenAI, Google (GOOG), Anthropic, and xAI, are driving a new generation of AI applications—and cementing Nvidia’s dominance.
Why the AI Boom Keeps Fueling Nvidia’s Climb
The scale of investment in AI infrastructure is staggering. Bernstein estimates that more than $750 billion is being poured into AI-driven data center development worldwide. Nvidia, as the primary supplier of hardware for this buildout, stands to capture a disproportionate share of the returns.
Its chips power the systems used by Microsoft, Amazon (AMZN), Meta (META), and nearly every major AI player. Wedbush analyst Dan Ives referred to Nvidia’s CEO Jensen Huang as the "Godfather of AI" and sees the stock’s trajectory continuing. Wedbush maintains an "Outperform" rating on Nvidia with a $175 price target.
The numbers tell the story: Nvidia’s market cap is now larger than the combined value of Broadcom (AVGO), AMD (AMD), Texas Instruments (TXN), and several other major semiconductor peers. It even exceeds the total market capitalization of entire sectors within the S&P 500, including real estate and utilities.
Can Anything Slow Down Nvidia?
Despite concerns about trade restrictions, competition from Chinese AI firms, and broader macroeconomic headwinds, Nvidia has continued to lead the AI charge. Its rise is reshaping tech sector dynamics, investor expectations, and the future of enterprise computing.
With a record-breaking valuation, strong revenue projections, and unmatched demand for its products, Nvidia is not just the biggest name in AI—it’s becoming the cornerstone of the digital economy’s next chapter.
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