Nvidia has become the first company in the world to reach a market value of $4tn. Shares in the chip-maker rose by as much as 2.4% to $164 on Wednesday, as the company continues to benefit from the ongoing surge in demand for the tech that powers artificial intelligence (AI).
The US-headquartered firm hit a market valuation of $1tn for the first time in June 2023 and has been rising steeply ever since. Nvidia analyst Dan Ives, of Wedbush Securities, wrote in a note when it was in a record-breaking moment for Nvidia. They are the only game in town with their chips the new oil and gold,” he wrote.
There is only one company globally that is the basis for the AI Revolution and that is Nvidia. Nvidia’s stock price fell sharply in April when world markets were shaken by US President Donald Trump’s escalating tariff war. While worries over Trump’s trade policy have not abated, Nvidia’s stock price has risen robustly since spring to reach this new milestone.
Eight years ago, Nvidia was valued at less than 1% of what it is today. Then, its growth was fueled by battling with competitor AMD to create the highest-quality graphics cards. Recently, Nvidia has skyrocketed driven by increasing demand for chips that drive generative AI models such as ChatGPT.
Its astounding growth has also driven up the profile of CEO Jensen Huang. Mark Zuckerberg referred to the 61-year-old as “the Taylor Swift of tech,” indicating his fame, particularly in Taiwan, where he is treated like a rock star.
Nvidia’s continuously increasing worth is an indication of Wall Street’s belief in AI expansion, in spite of the uncertainty that has surrounded Trump’s economic agenda. The firm reported total revenue of $44.1bn in the first quarter, which was a 69% increase from the same period last year, and a profit of 81 cents a share.
