Nvidia Becomes World’s First Company to Cross $4 Trillion Market Capitalisation

Prime Highlights:

Nvidia was the first listed company ever to register a $4 trillion market capitalisation.
The growth is fueled by massive demand for AI chips and datacentre solutions.

Key Fact:

Nvidia’s shares have grown more than 1,000% since 2023.
The company has the largest S&P 500 index weighting of more than 7.3%.

Key Background

In a record milestone, Nvidia became the first ever publicly traded company in the world to reach the $4 trillion market cap milestone. The feat is recorded in the context of a runaway artificial intelligence hardware boom, with Nvidia’s graphic processing units (GPUs) reigning supreme worldwide.

Nvidia shares came close to hitting record levels, its market capitalization passing $4 trillion intraday before closing just shy of that mark. It, nonetheless, cemented its place above tech behemoths Apple and Microsoft. Its ascendancy has been nothing but stellar—its market capitalization jumped from $1 trillion in mid-2023 to well over $4 trillion in a little over one year on the strength of the developing AI revolution.

Behind the growth is Nvidia’s leadership in building artificial intelligence platforms. The largest technology companies in the world, such as Microsoft, Amazon, Meta, and Google, are spending generously to build AI infrastructure, and Nvidia’s chips are at the center of these investments. Collectively, these companies are expected to spend over $350 billion on AI-infrastructure expenses in the short term, and Nvidia is poised to capture a large percentage of that investment.

In spite of international competition and regulation, Nvidia keeps on delivering more than anticipated. Even worries about increased competition from Chinese chipmakers as well as changing US technology policy have not scared investors away. From data centers to autonomous vehicles, Nvidia’s technology supports the AI infrastructure.

While the company is trading at relatively high valuation right now, experts feel that its forward-looking earnings estimates and strategic AI positioning are worth the optimism. Nvidia’s revenues will reach almost $200 billion by 2026, further solidifying its dominance in the semiconductor space. Setting this new benchmark of $4 trillion, Nvidia has set the new standard in technology-driven market capitalization and remains leading the world AI revolution.