Nvidia has made history as the first company to achieve a $4 trillion market capitalization, highlighting its substantial influence in the global financial arena.
Nvidia has reached a historic milestone, becoming the first company to reach a market valuation of $4 trillion. This achievement underscores its dominant role in the global financial sector.
The chipmaker’s shares experienced a 2.8 percent rise to $164.42 on Wednesday, driven by the unwavering demand for artificial intelligence technologies and Nvidia’s strategic leadership in the AI hardware market. This surge has solidified Nvidia’s position on Wall Street as the most valuable company, surpassing long-standing industry giants Apple and Microsoft. Currently, Apple and Microsoft are the only other U.S. companies with valuations exceeding $3 trillion.
Nvidia first attained a $1 trillion market valuation in June 2023, and since then, the company’s growth trajectory has surpassed that of every other mega-cap stock. In a little over a year, its market value has more than tripled, achieving this milestone at a faster pace than Apple and Microsoft, which are currently valued at $3.01 trillion and $3.75 trillion respectively.
The company’s rebound has been remarkable, with its shares increasing by approximately 74 percent from their lowest point in April. This recovery follows a period of market instability triggered by U.S. President Donald Trump’s renewed tariff conflicts. During this time, investors were concerned about a potential slowdown in AI investments, particularly due to emerging competition from China’s DeepSeek. However, recent optimism surrounding new trade agreements has improved market sentiment, driving the S&P 500 to an unprecedented high.
Currently, Nvidia holds a 7.3 percent weighting on the S&P 500, the highest of any company, surpassing both Apple and Microsoft, which account for around 7 percent and 6 percent, respectively, according to Indian Express.
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