"Nvidia hits $4tn market cap, first company to achieve milestone"

Chipmaker Nvidia Reaches $4tn Market Value in Historic First

Nvidia became the first publicly traded company to achieve a $4tn market valuation on Wednesday as its stock continues its remarkable upward trend.

The leading chip designer’s shares rose about 2.4% to $164, driven by sustained demand for artificial intelligence technologies. Nvidia’s hardware and software are widely regarded as essential for the development of AI applications.

The company first reached a $1tn valuation in June 2023 and has since seen its market capitalization more than triple in roughly a year—surpassing the growth of Apple and Microsoft, the only other U.S. firms valued above $3tn. Apple was the first to hit the $3tn mark in 2022.

Microsoft currently holds the second-largest market value among U.S. companies, at approximately $3.75tn. Nvidia now represents about 7.3% of the S&P 500, Wall Street’s primary stock index, while Apple and Microsoft account for around 7% and 6%, respectively.

Despite a 74% drop in April amid global market turbulence influenced by U.S. trade policies, Nvidia has rebounded. The company faces restrictions on selling its most advanced chips to China due to export controls, though it has opposed these limitations.

Recent optimism over trade negotiations has boosted global stocks, with the S&P 500 reaching a record high.

Daniel Ives, a technology analyst at Wedbush, expects more major firms to join Nvidia in the $4tn club soon. "Nvidia and Microsoft are at the forefront of the AI revolution, shaping the biggest technological shift we've witnessed in 25 years of tracking tech stocks," he said.

Ives predicts Microsoft will reach $4tn "this summer," adding that the focus will then shift to the $5tn milestone as the AI-driven market rally continues.