New Delhi: It finally happened. Nvidia briefly became the first US-listed company to hit a market valuation of $4 trillion on Wednesday, crossing a milestone even tech giants like Apple and Microsoft hadn’t reached. The moment didn’t last till closing, but it made one thing clear, Wall Street’s favourite AI chipmaker is not slowing down anytime soon.
Shares of the Silicon Valley-based company touched an all-time high of $164 during the trading session, gaining 2.5 percent before settling at $162.88. Even with that dip, the run-up is staggering. The stock has shot up nearly 10 times since early 2023, when it was valued at around $400 billion.
AI boom drives Nvidia past Apple and Microsoft
Nvidia’s rise has been powered almost entirely by demand for AI chips. It now holds the biggest weight on the S&P 500 index, at 7.3 percent, beating Apple and Microsoft. And with AI continuing to dominate tech investments globally, Nvidia’s position looks stronger than ever.
In comparison, Apple and Microsoft, the only other American companies with valuations above $3 trillion, have struggled to match Nvidia’s recent pace. Microsoft is currently worth $3.75 trillion. Apple, once the poster child of tech dominance, now trails Nvidia by around $900 billion.
Nvidia achieved a $1 trillion market value for the first time in June 2023. It then tripled that figure in just over a year. The pace is faster than what Apple or Microsoft ever managed.
Financials, setbacks, and a quick bounce-back
Despite a rough patch earlier this year, when AI stocks took a hit after a low-cost Chinese model from DeepSeek entered the picture, Nvidia bounced back quickly. In April, shares slipped under $87 when US President Donald Trump imposed sweeping tariffs. But by May-end, the company had already reported another record quarter.
It posted revenue of $44.1 billion in the first quarter, a 69 percent rise from a year earlier, and expects Q2 revenue to be around $45 billion. Profit last quarter stood at $18.8 billion, even after absorbing a $4.5 billion hit due to chip sales restrictions to China.
Nvidia’s next earnings report is due on August 27, and analysts are already predicting that the stock may climb to $196, pushing its market value to nearly $4.8 trillion if current demand holds.
More than just numbers
Nvidia’s rise has reshaped tech’s power rankings. Its CEO Jensen Huang, often referred to as the “godfather of AI,” is now a central figure in the global AI conversation. His personal wealth has swelled to an estimated $142 billion, reflecting Nvidia’s dominance in the hardware side of AI infrastructure.
In contrast, Apple is still working to make Siri smarter, with delays pushing its promised AI upgrades to next year. Meanwhile, OpenAI and former Apple design chief Jony Ive are reportedly building a wearable AI device that could challenge the iPhone in the long run.
All eyes will now be on Nvidia’s next quarterly numbers and whether it can maintain its position at the top. But for now, the $4 trillion peak stands as a reminder of how quickly the AI wave is changing the game.