NVIDIA becomes the world’s most valuable company as its market capitalisation reaches $4 trillion

NVIDIA has surpassed Microsoft and Apple, by becoming the first company to reach the market capitalisation of $4 trillion, which only serves to reinforce its global AI dominance.

Under the stewardship of CEO Jensen Huang, the AI chipmaking behemoth continues to go from strength-to-strength, and amidst the Generative AI boom, NVIDIA has emerged as the key industry player.

Its dominance is drawing parallels with that of Apple, who completely took the smartphone industry by storm following the launch of their iconic iPhone in 2007.

On Wednesday, NVIDIA’s stock swelled which briefly lifted the company’s market cap to $4 trillion. However, its stock ended the day up by 1.8%, which gave them a market cap of $3.97 trillion.

Despite the fact it didn’t remain at $4 trillion by the time the closing bell was rung on Wall Street, NVIDIA is the first company to ever achieve this market value during trading.

Microsoft and Apple both hit $3 trillion before NVIDIA, but neither of those tech titans ever hit the $4 trillion market cap.

NVIDIA hit the $2 trillion market in February 2024, and surpassed $3 trillion in June of this year.

Microsoft is one of NVIDIA’s biggest customers and the pair have entered into a series of long-term agreements, which solidifies the strength of their partnership.

Nvidia has profited heavily from the growing demand for AI hardware and chips since the launch of ChatGPT in late 2022. The company has positioned itself as the decisive leader in creating the graphics processing units that power large language models.

The surge in demand has boosted shares in the chipmaking behemoth more than fifteenfold over the last five years. Nvidia’s shares are up more than 15% over the last month and 22% since the start of the year.

The surge in demand comes during a time of geopolitical tensions between Beijing and Washington, the Trump administration is keen to curb chips being sent to China.

There had been concerns from NVIDIA investors that the rise of China’s DeepSeek AI model would result in a decline in demand for NVIDIA’s chips., but that hasn’t materialised.

In May, Nvidia said that a recent export restriction on its H20 chips created for China would cost it $8 billion in lost sales.

“The $50 billion China market is effectively closed to U.S. industry,” Huang said during a May earnings call.

Huang previously told CNBC that getting blocked from selling chips in China would be a “tremendous loss” for the company.