Nvidia has technically crossed into unprecedented territory in corporate history by becoming the first and only company to ever reach a $4 trillion market valuation, a feat that solidifies its position as a global financial giant.
The semiconductor behemoth saw its shares surge 2.8% on Wednesday, closing at $164.42. This latest surge is a testament to the explosive demand for artificial intelligence and Nvidia's unparalleled leadership in AI hardware.
The rally also solidified its position as the world's most valuable firm, ahead of tech giants Apple and Microsoft — the only other U.S. companies currently worth over $3 trillion.
Since reaching $1 trillion in June 2023, Nvidia's pace of acceleration has left all other tech giants behind. In less than a year and a half, its market capitalization has increased over threefold, a rise that was not just swift but outpaced the growth rate of Apple and Microsoft, whose current market values stand at $3.01 trillion and $3.75 trillion respectively.
The firm's comeback has been dramatic. After falling to a low in April — a period when global investors were spooked by then-President Donald Trump's resumed tariffs — Nvidia's shares have jumped about 74%. Fears had built up around putative slowdowns in AI spending, especially amid intensifying competition from China's DeepSeek. But increased optimism around nascent trade deals has restored market confidence, driving the S&P 500 to new records.
Nvidia currently has a 7.3% weighting in the S&P 500 index, higher than any other corporation. In comparison, Apple and Microsoft have weightings of around 7% and 6%, respectively.
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