By Nvidia has officially crossed into uncharted financial territory.
The U.S.-based chipmaker on Tuesday became the first publicly traded company to reach a $4 trillion market valuation, propelled by extraordinary investor demand for artificial intelligence technology. The milestone follows an explosive 12-month rally, during which Nvidia’s stock price has more than tripled.
At the close of trading, Nvidia’s share price rose 2.5% to $164, cementing its spot above the $4T threshold and edging ahead of both Microsoft and Apple, whose valuations hover near $3.75 trillion. It’s a moment of validation for CEO Jensen Huang, whose company has become the de facto infrastructure backbone of the AI revolution.
The market’s euphoria is tied to Nvidia’s dominant role in producing graphics processing units (GPUs)—the critical hardware powering large language models, AI training platforms, and autonomous systems. Nvidia’s Q1 revenue reached $44.1 billion, a staggering 69% increase year-over-year, with forward guidance projecting even stronger results for the rest of 2025.
While tech investors are cheering, analysts remain cautious. “Even with 34x forward earnings, it’s not overheated compared to past bubbles,” said one strategist. But the speed of Nvidia’s ascent recalls previous tech bubbles, and any misstep—especially with Q2 earnings expected in August—could trigger market volatility.
Wall Street has embraced Nvidia as the “picks-and-shovels” provider of the AI boom. Its chips power everything from ChatGPT to robotaxis and cloud hyperscalers. But skeptics warn the hype could eventually outpace demand, especially as rivals like AMD and custom chipmakers fight for share.
Nonetheless, with Nvidia now holding a valuation equivalent to the GDP of Germany, the market message is clear: in this AI-dominated era, infrastructure is king—and Nvidia is sitting on the throne.