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Nvidia has made history as the first company to reach a market cap of $4 trillion, indicating its position as a leader in the global stock market.
Its achievement indicates Nvidia’s dominance in the AI industry, which is driven by strong demand for its chips and hardware. Despite ongoing global trade tensions and market volatility, Nvidia stock has continued its surge, maintaining investors’ confidence in the AI boom.
A Record-Breaking Milestone
On July 9th, Nvidia stock surged 2.8%, which led to its push to the $4 trillion market cap mark. Nvidia secured its position as the most valuable company in the world, ahead of Microsoft’s $3.7 trillion market cap and Apple’s $3.1 trillion.
The Santa Clara-based company surpassed $2 trillion in February 2024 and $3 trillion in June 2024. ⁽¹⁾
Nvidia stock has surged almost 1,000% since its Q1 earnings in 2023 and is up 20% in 2025. Over the past five years, the stock has consistently risen due to its high demand for AI chips and hardware since the launch of ChatGPT. ⁽²⁾
High Demand for AI Fuels Growth
Nvidia’s stock surge was mainly driven by strong commitments to AI spending by major tech companies such as Microsoft, Meta, Amazon and Alphabet. These tech titans are expected to spend $350 billion on CAPEX due to high demand for AI used in language models and generative systems, which represent 40% of Nvidia’s revenues. ⁽³⁾
Nvidia’s leadership in producing GPUs (Graphics Processing Units) has secured the company’s position as the backbone of the artificial intelligence industry while the company continues to report strong earnings. Nvidia CEO Jensen Huang has stated that industry trends that favor AI are supporting investor confidence.
Nvidia Bounces Back After Rocky Start to 2025
In January, the emergence of the newly Chinese AI model DeepSeek, brought some fears to Nvidia and other major AI companies, which required fewer chips to operate.
This factor triggered a major sell-off in semiconductor stocks. President Trump’s tariff threats in April added to concerns about the global macroeconomic backdrop and led to further selling.
In May, Nvidia said that a recent export restriction on its H20 chips created for China would cost it $8 billion in lost sales due to chip export restrictions to China from the US government. ⁽⁴⁾
Nvidia’s stock got back on track as trade talks with the US and other nations targeted by tariffs remain in progress. Strong earnings from Nvidia also boosted investor sentiment in the semiconductor industry.
Jensen Huang’s comments on the resilience of AI demand have boosted other AI stocks, ignoring earlier concerns on reduced chip needs. ⁽⁵⁾
Nvidia Becomes Leader of the Mag 7
Nvidia’s $4 trillion market cap sets it apart from other tech giants. Apple first touched a $3 trillion market capitalization in early 2022, the first company to do so. In a sign of how quickly Nvidia’s historic rally has been, the chipmaker was valued at about $750 billion at the time. ⁽⁶⁾
Microsoft, another key Nvidia customer, holds a $3.7 trillion valuation, while Alphabet and Amazon exceed $2 trillion. Both Alphabet and Amazon top $2 trillion, with Meta also joining the trillion-dollar club. ⁽⁷⁾
