Nvidia becomes first company to reach $4 trillion market cap amid AI boom
NVIDIA (NASDAQ:NVDA) on Wednesday became the first company in history to surpass a $4 trillion market value, as investor enthusiasm for artificial intelligence continued to fuel a dramatic rally in the chipmaker’s shares, News.Az reports citing Investing.
The stock rose 2.7% to close at $164.32, topping the approximate $163.93 level needed to push Nvidia’s market capitalization past the $4 trillion threshold.
The strong advance comes following Nvidia’s blockbuster first-quarter results in May, which came despite China-related write-downs and concerns over DeepSeek.
At that time, Chief Executive Jensen Huang pointed to four unexpected tailwinds accelerating demand for the company’s products.
The first, he said, is a sharp uptick in demand for “reasoning AI,” or models capable of more complex and contextual inference. “It’s fairly clear now that AI is going through exponential growth,” Huang said, noting that recent progress has helped ease concerns around hallucination and reliability.
Second, Huang cited the recent rollback of international AI export restrictions, calling the move a pivotal shift for U.S. technology leadership. “President Trump wants America to win,” he said. “To do that, the American stack needs to be out in the world.”
Enterprise AI marked the third surprise. Huang highlighted rising adoption of agent-based systems in business software and noted strong momentum behind Nvidia’s RTX Pro Enterprise server platform.
Lastly, Huang said the reshoring of global manufacturing is boosting demand for industrial AI. He emphasized opportunities tied to the buildout of new factories, calling AI infrastructure “the fourth pillar,” alongside compute, storage, and networking.
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