Founded in 1993 to enhance PC gaming graphics, Nvidia expanded into AI by developing powerful chips and software used in machine learning and cloud computing|Will Buckner|CC BY 2.0
Nvidia became the first company to cross a $4 trillion market value yesterday before finishing the day with a value of $3.972 trillion.
The AI chipmaker’s stock rally, fueled by soaring demand for generative AI, has skyrocketed in just two years, up from a $1 trillion valuation in 2023. Nvidia designs GPUs that power everything from advanced chatbots to data centers.
The California-based company is the first ever to achieve this market value.
The AI chipmaker’s recent rally has come despite growing competition, geopolitical tensions, and ongoing chip export curbs that have affected sales to China.
With the rise of DeepSeek, investors feared that China had found a cost-effective way to develop generative AI models, and the company saw its stock tank. But it has since recovered.
Shares also took a hit when President Donald Trump’s tariffs jolted global markets in April, however, the stock has rebounded about 74% since.
Founded in 1993 to enhance PC gaming graphics, Nvidia expanded into AI by developing powerful chips and software used in machine learning and cloud computing.
It supplies chips to companies including Microsoft, OpenAI, Meta, and Google.
The company now equals the market value of the 214 smallest firms in the S&P 500 combined, reflecting its central role in the global AI boom.