By Kay Noel
In a significant financial breakthrough, Nvidia has become the world’s first publicly traded company to reach a $4 trillion market value. The US chipmaker’s stock rose 2.5% after market opening on Wednesday, hitting an intraday record high that pushed its market value above the $4 trillion mark.
Key Factors Contributing to Nvidia’s Success:
- Artificial Intelligence (AI) Leadership: Nvidia’s dominance in the AI chip market has been a major driver of its growth, with its chips powering data centers for tech giants like Microsoft, Amazon, and Google.
- Strong Financial Performance: Nvidia generated $44.1 billion in revenue for the quarter ending April 2025, a 69% increase from the same period last year.
- Innovative Products: Nvidia’s new AI models, such as Blackwell Ultra, are designed to support more sophisticated AI applications, further solidifying its position in the market.
Market Impact:
Nvidia’s achievement has sparked interest among investors and analysts, with some predicting the company could reach a $5 trillion market capitalization within the next 12-18 months. The company’s success has also lifted the overall tech industry, with the S&P 500 and Nasdaq closing at new record highs .
Expert Insights:
- “There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia,” said Dan Ives, analyst at Wedbush Securities.
- Nvidia CEO Jensen Huang believes AI will transform every industry, from software to healthcare and finance, and sees a long runway for growth .
