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Nvidia's dominance in the artificial intelligence (AI) sector has propelled it to become the first company in the world with a market value of $4 trillion. Shares in the chipmaker surged as much as 2.4% to $164 on Wednesday, extending a meteoric rise that began when the company first reached a $1 trillion valuation in June 2023. The company's valuation climb reflects the insatiable global demand for its AI-powering chips.
Nvidia's share price dropped significantly in April when global markets were jolted by US President Donald Trump's intensifying tariff war. Though concerns over Trump's trade policies have not gone away, Nvidia's share price has grown strongly since spring to hit this new landmark.
Eight years ago, Nvidia's stock was worth less than 1% of its current price. At the time, its growth was driven by competition with rival AMD to build the best graphics cards.
More recently, Nvidia has surged due to rising demand for chips powering generative AI models like ChatGPT. Its meteoric rise has also elevated CEO Jensen Huang's profile.
Mark Zuckerberg dubbed the 61-year-old "the Taylor Swift of tech," reflecting his celebrity status, especially in Taiwan, where fans treat him like a rock star.
Tech analyst Dan Ives, of Wedbush Securities, said in a note that this was a historic moment for Nvidia.
"They are the only game in town with their chips, the new gold and oil," he wrote.
"There is one company in the world that is the foundation for the AI Revolution and that is Nvidia."
Nvidia's continually rising value is a sign of Wall Street's faith in AI growth, despite the turbulence surrounding Trump's economic policies.
The company reported a total revenue of $44.1bn in the first quarter, marking a 69% jump from a year ago along with a profit of 81 cents a share.
