Nvidia Becomes First Company To Reach $4 Trillion Market Cap

Nvidia became the first company in the world to reach a $4 trillion market valuation on Wednesday. The tech giant briefly hit the milestone after its shares rose 2.8%, to a record high of $164.42 per share, benefiting from AI technology demand.

According to Reuters, Nvidia has solidified its position as one of Wall Street’s favorites, closing the day with a gain of 1.80% and a market value of $3.97 trillion. The company has made major strides in developing the hardware necessary to power advanced AI systems.

The tech giant recently announced it will build the world’s first industrial AI cloud in Germany. It has also been developing specialized graphics processing units (GPUs) for AI companies and creating affordable AI chips for the Chinese market—while remaining compliant with U.S. export restrictions.

Despite a massive share drop in January, when Nvidia lost $600 billion in market value, the company has managed to surge and surpass its $3 trillion record, hit just 13 months ago.

“It highlights the fact that companies are shifting their asset spend in the direction of AI and it’s pretty much the future of technology,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York, to Reuters.

Nvidia is now worth more than the Mexican and Canadian stock markets combined, and surpasses the total value of all publicly listed companies in the United Kingdom. The company also surpasses Microsoft and Apple—both of which were the first to hit the $3 trillion mark.

According to CNBC, Nvidia—founded in 1993 and based in California—has successfully navigated current geopolitical tensions between the U.S. and China, and its shares rose over 15% in the last month and 22% since the beginning of the year.

In May, Nvidia said that the restrictions of its H20 for the Chinese market could cost the company around $8 billion in loss. Its CEO, Jensen Huang, said that getting blocked from that market would be a “tremendous loss” for the company’s business.