Nvidia reached a historic milestone on Thursday, with its market capitalization closing above $4 trillion for the first time, reinforcing its role as the pivotal force in Wall Street’s escalating battle to command artificial intelligence technologies.
The company’s shares advanced 0.75% to end the session at $164.10, bestowing Nvidia with a market value of $4.004 trillion and expanding its lead over rivals such as Apple and Microsoft. This surge comes amid soaring demand for AI-related solutions, fueling optimism about Nvidia’s dominant position.
Nvidia’s valuation briefly touched the $4 trillion threshold during Wednesday’s trade, but the session closed at approximately $3.97 trillion. The chipmaker’s worth now exceeds the combined market capitalization of every listed company in the UK—a testament to its prominence.
At the heart of the AI revolution, Nvidia’s advanced processors have become indispensable to industry giants including Microsoft, Amazon, Alphabet, and Meta Platforms, all of whom are making massive investments in AI data center infrastructure as they vie for technological supremacy.
However, Nvidia’s rapid ascent also increases its exposure to geopolitical tensions, particularly between Washington and Beijing. The company faces ongoing U.S. export restrictions on its most sophisticated chips destined for China, introducing further uncertainty into its outlook.
Nvidia first crossed the $1 trillion valuation milestone in June 2023, and within just 12 months, it has the value.
Currently, Microsoft holds the second spot among America’s most valuable companies, with a market capitalization of $3.73 trillion. Its shares edged lower by 0.4% on Thursday.
