Nvidia has become the first publicly listed company to cross the $4 trillion market cap threshold, following a 2% rise in its share price on Wednesday. The surge has elevated the California-based chipmaker to the top of the global valuation leaderboard, surpassing Microsoft and Apple.

The company now has the highest market cap ever recorded for a listed business. Its growth has been propelled by sustained investor enthusiasm for generative artificial intelligence, for which Nvidia provides the critical hardware, CNBC reported.

Rapid Rise Fueled by AI Demand

Nvidia first surpassed the $2 trillion mark in February 2024 and crossed $3 trillion in June. The company’s stock has gained more than 15% over the past month and is up 22% since the start of the year. Over the last five years, shares have risen more than fifteenfold.

Demand for Nvidia’s graphics processing units (GPUs), widely used to train and operate large language models, has continued to grow following the launch of OpenAI’s ChatGPT in late 2022. The company counts Microsoft among its key customers.

Nvidia’s recent stock rally has occurred despite regulatory and geopolitical challenges. In May, the company said export restrictions on its H20 chips, developed specifically for China, would result in an estimated $8 billion in lost revenue.

Nvidia price on the daily chart, source: TradingView

The company has also moved past earlier concerns that Chinese AI models, such as DeepSeek, could reduce reliance on Nvidia’s high-end chips. Huang previously told CNBC that restrictions on sales to China would represent a “tremendous loss.”

A New Era of Market Leadership

With Wednesday’s move, Nvidia now has a higher valuation than Microsoft and Apple, which had each previously crossed the $3 trillion mark. This development reflects Nvidia’s dominant role in the rapidly expanding AI chip market and its positioning as a key supplier to the technology sector.

The company, founded in 1993, has shifted from its origins in graphics hardware for gaming to become a core component of the modern AI ecosystem. It $4 trillion valuation underscores the scale of investor confidence in that transformation.

Source: Finance Magnates