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Nvidia Surpasses Apple and Microsoft to Become World’s First $4 Trillion Company
New York (CNN) — Nvidia briefly reached a $4 trillion market valuation on Wednesday, becoming the first publicly traded company to achieve this historic milestone.
The chipmaker’s stock rose 2.76% at market open, hitting an intraday record high that pushed its market capitalization above the $4 trillion threshold. Although gains moderated later in the session, shares closed up 1.8%, leaving Nvidia’s valuation just shy of $4 trillion.
Nvidia outpaced tech giants Apple and Microsoft in reaching this landmark figure. Apple began the year as the world’s most valuable company, with a market cap nearing $3.9 trillion, but its valuation declined in recent months amid trade tensions linked to former President Donald Trump’s tariff policies. Meanwhile, Nvidia and Microsoft had been vying for the top spot before Nvidia’s latest surge secured its lead.
Dominance in the AI Boom
Nvidia’s meteoric rise—its stock has climbed roughly 21% this year—stems from its pivotal role in powering the artificial intelligence revolution. The company’s high-performance chips are integral to the data centers used by Microsoft, Amazon, and Google to train AI models and deliver cloud services. With global AI infrastructure spending projected to exceed $200 billion by 2028 (per IDC), Nvidia stands at the forefront of this expanding market.
In its most recent quarter, ending in April, Nvidia reported $44.1 billion in revenue—a staggering 69% year-over-year increase.
“Nvidia is the foundational force behind the AI revolution,” Wedbush Securities analyst Dan Ives noted in a June 27 research report.
From Gaming to AI Leadership
Originally renowned for its graphics processing units (GPUs) favored by PC gamers, Nvidia has aggressively expanded into AI-driven technologies, including autonomous vehicles and robotics. At its March developer conference, the company unveiled an upgraded version of its Blackwell chip—the Blackwell Ultra—designed to enhance AI models with advanced reasoning capabilities.
Nvidia first crossed the $1 trillion valuation mark in May 2023.
“This is a defining moment not just for Nvidia but for the broader tech industry, signaling the next phase of AI-driven growth,” Ives said in a Wednesday commentary. He predicted Microsoft, currently valued at $3.77 trillion, could also breach the $4 trillion mark this summer.
Challenges Amid Success
Despite its dominance, Nvidia faces headwinds. Earlier this year, Chinese startup DeepSeek rattled markets with its cost-efficient AI model, raising doubts about the necessity of expensive hardware—triggering a temporary slump in Nvidia’s stock. Additionally, U.S. export restrictions on AI chips to China cost the company an estimated $2.5 billion in lost revenue last quarter.
Between January and April, Nvidia shares dropped as much as 37% due to competitive pressures and U.S.-China trade tensions. However, the stock has since rebounded, soaring nearly 74% since early April.
Long-Term Growth Prospects
CEO Jensen Huang remains bullish on Nvidia’s trajectory, asserting that AI will transform every sector—from healthcare and finance to manufacturing and transportation.
“AI is an unprecedented technological shift, and we’re still in its early stages,” Huang said during Nvidia’s May earnings call.
Wall Street analysts share his optimism. Loop Capital projects Nvidia could reach a $6 trillion market cap by 2028, citing its near-monopoly in critical AI infrastructure.
“While Nvidia’s current growth seems extraordinary, its dominance in essential AI technology positions it for sustained expansion,” wrote Loop Capital analysts Ananda Baruah and Alek Valero.
As Nvidia continues to shape the future of AI, its influence—and valuation—show no signs of slowing.