Nvidia Corp. has officially become the first company in history to reach a $4 trillion market valuation, solidifying its dominance at the epicenter of the global artificial intelligence (AI) boom. The chipmaker’s stock surged 2.8% on Wednesday to $164.42, continuing a rally that has made it Wall Street’s most powerful growth engine.
The landmark comes after a turbulent start to 2025, when investor fears surrounding China’s AI challenger DeepSeek and renewed U.S. trade tensions under President Donald Trump dampened risk appetite. However, Nvidia’s sharp rebound has not only restored confidence but it has also redefined market momentum.
The company’s stock has soared more than 20% in 2025 alone and over 1,000% since the start of 2023. Nvidia now commands a staggering 7.5% weight in the S&P 500 Index, nearing a record level of index concentration.
Much of the bullish momentum is being driven by relentless demand for Nvidia’s AI chips, particularly from hyperscalers such as Microsoft, Meta, Amazon, and Alphabet. These tech giants are projected to pour approximately $350 billion into capital expenditures in their upcoming fiscal years, with Nvidia sitting at the core of that investment cycle.
“There’s obviously tremendous demand” for Nvidia’s products, said Brian Mulberry, client portfolio manager at Zacks Investment Management. He emphasized that the company’s cutting-edge chips are essential for pushing AI into its next evolutionary phase, a theme investors have embraced during the recent 90-day rally.
Investor enthusiasm for AI stocks had cooled earlier in the year, as DeepSeek’s emergence cast doubt on whether Nvidia could maintain its market grip. Trump’s aggressive tariff rhetoric in April further rattled global markets, prompting a rotation into safer, defensive sectors.
However, optimism returned in May when signs of progress in trade negotiations rekindled interest in risk assets. Nvidia’s earnings at the end of the month exceeded expectations, confirming robust spending from its biggest customers and reinforcing the company’s leadership in the AI hardware space.
CEO Jensen Huang’s remarks on the global industrial AI transformation helped fuel confidence that Nvidia’s trajectory remains steeply upward. The company has outpaced tech behemoths like Microsoft and Apple, now valued at around $3.7 trillion and $3.1 trillion, respectively.
For context, Apple became the first to hit the $3 trillion milestone in early 2022 but has since remained relatively flat, highlighting the sheer pace of Nvidia’s rise. At the time Apple crossed that threshold, Nvidia’s market cap was just $750 billion.
Alphabet, Amazon, and Meta also remain in the trillion-dollar club, while Tesla has slipped below that mark. Yet none have captured market imagination like Nvidia, whose AI-driven ascent is reshaping the hierarchy of tech’s elite.
With AI investment projected to accelerate globally, Nvidia’s dominance shows no signs of slowing, marking a historic turning point in both semiconductor leadership and the broader stock market landscape.
