Nvidia Becomes First Company to Reach $4 Trillion Valuation Amid AI Boom
Nvidia made history on Wednesday by becoming the first publicly traded company to hit a market valuation of $4 trillion. This milestone reflects the accelerating influence of artificial intelligence (AI) on the global tech industry. Nvidia’s rise has surpassed previous records set by Apple, which was the first company to cross $1 trillion, $2 trillion, and $3 trillion in value. The company now holds a $900 billion lead over Apple, largely due to its dominance in the AI chip sector.
In contrast, Apple has struggled to keep up in the AI race. Despite promises to upgrade its devices with smarter AI features, including improvements to its voice assistant Siri, the company has faced delays. Apple recently admitted that achieving its AI targets would likely take until next year. Meanwhile, former Apple design chief Jony Ive has teamed up with OpenAI to develop an AI-powered wearable device that could challenge the iPhone’s relevance.
Nvidia’s growth has been fueled by surging demand for its specialized processors that power energy-intensive data centers essential for AI workloads. Big tech players like Microsoft, Amazon, Alphabet, and Meta have collectively earmarked around $325 billion for AI-related investments in 2025—funds that are expected to significantly benefit Nvidia’s bottom line.
This demand surge has caused Nvidia’s stock price to skyrocket, increasing tenfold from about $400 billion in early 2023 to $4 trillion in 2025. Though its market value briefly dipped below $4 trillion later in the day, shares remained strong around $163. CEO Jensen Huang, now dubbed “the godfather of AI,” has seen his personal fortune soar to $142 billion as the company’s influence continues to grow.
Despite temporary setbacks, including a sharp drop in stock price after former President Donald Trump’s tariff announcement and U.S. restrictions on chip exports to China, Nvidia rebounded strongly with a $18.8 billion profit reported in May. The company’s next earnings report is due on August 27, with investors eager to see whether Nvidia can sustain its dominance in the increasingly competitive AI sector.
Source: Business day