Nvidia’s market capitalisation touched the $4 trillion mark for the first time on Wednesday, making it the world’s first publicly listed company to hit the milestone, amid sustained investor demand for artificial intelligence-linked stocks.
Shares of the chipmaker climbed as much as 2.4% to $164 in intraday trade, buoyed by Nvidia’s leadership in high-end AI semiconductor design and growing investor optimism around long-term AI adoption.
As of 10:05 AM GMT-4, US market indicators were trading higher. The Dow Jones Industrial Average (DJIA) was up by 199.7 points (+0.45%) at 44,440.46, while the NASDAQ had gained 210.53 points (+1.03%) to reach 20,629. The S&P 500 was also higher by 37.89 points (+0.61%) at 6,263.41.
Nvidia first reached a $1 trillion market valuation in June 2023, and its rapid growth has continued since then, with its market value more than tripling in just a year—outpacing the speed at which Apple and Microsoft, the only other US companies valued above $3 trillion, reached that milestone.
Meanwhile, Microsoft remains the second-largest US company by market capitalisation at $3.75 trillion, with its shares last trading 1.3% higher at $503, Reuters reported.
Nvidia, meanwhile, has surged nearly 74% since its April lows, when global markets were rattled by President Donald Trump's sweeping tariff moves. The stock's dramatic rebound has been fuelled by optimism that the US will strike trade deals with key partners, pushing the S&P 500 to fresh all-time highs.
Nvidia now holds the heaviest weighting on the benchmark S&P 500 index at 7.3%, surpassing tech giants Apple and Microsoft, which account for roughly 7% and 6%, respectively.
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