Nvidia has become the first public company in the world to reach a US$4 trillion market capitalisation, solidifying its position as one of Wall Street’s most-favoured stocks. Shares of the leading chip designer rose as much as 2.4% to $164 on Wednesday, a direct result of the ongoing surge in demand for artificial intelligence (AI) technologies.
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The company’s growth has been staggering. After first hitting a $1 trillion market value in June 2023, its market cap has more than tripled in just over a year, a growth rate faster than both Apple and Microsoft—the only other US firms to surpass $3 trillion in market value.
Nvidia’s new milestone places it firmly ahead of its biggest rivals. Microsoft is currently the second most valuable US company, with a market cap of $3.75 trillion. The company’s shares were up 1.3% at $503.
This dominance is also reflected in the S&P 500 index, where Nvidia holds a significant 7.3% weight—the largest on the index. For comparison, fellow tech giants Apple and Microsoft account for around 7% and 6% of the S&P 500, respectively.
The achievement marks a substantial recovery for Nvidia’s stock, which has rebounded roughly 74% from its April lows. The previous dip was caused by broader market jitters following a series of tariff announcements by US President Donald Trump. However, optimism around new trade deals with the US has since lifted stocks, helping the S&P 500 hit an all-time high and pushing Nvidia to its record-breaking valuation.