Nvidia on Wednesday became the first company in the world to hit a $4 trillion market valuation. The milestone reflects Wall Street’s growing confidence in artificial intelligence.
Shares of the California-based chipmaker surged as high as $164.42 before settling slightly lower. That gave Nvidia a temporary market cap of over $4 trillion. It closed the day just under that level at $3.97 trillion. Even so, it ended the day as the most valuable company in the world—overtaking Apple and Microsoft.
Nvidia’s rise has been fueled by its dominance in high-performance chips. These chips power artificial intelligence, robotics, and automation.
CEO Jensen Huang, who once focused on gaming and crypto chips, now leads a company seen as the backbone of global AI infrastructure. Its rapid growth is outpacing even its biggest tech rivals. The stock is up 74% since its lows in April.
Those April lows came after Trump’s aggressive tariff announcements rattled markets. But markets have since rebounded. Nvidia’s comeback is partly credited to Trump walking back some of the harshest tariffs. At the same time, he’s using strategic pressure to force better trade deals.
“You’ve seen the markets walk us back from a worst-case scenario in terms of tariffs,” said CFRA tech analyst Angelo Zino. He also pointed to Trump’s recent state visit to Saudi Arabia. During that visit, Nvidia signed a major AI infrastructure deal. It’s another sign that the administration is using the tech giant as part of a broader strategy.
Some analysts say Nvidia is no longer just a market darling. It’s now a geopolitical tool. “We’ve seen the administration using Nvidia chips as a bargaining chip,” Zino added.
Nvidia still faces some challenges. These include U.S. export controls to China and foreign AI rivals like DeepSeek. But its fundamentals remain strong.
In the first quarter, Nvidia posted $44.1 billion in revenue—a 69% jump from a year ago. Profits hit 81 cents per share. The company expects $45 billion in revenue in the second quarter. It will report earnings on August 27.
Nvidia’s stock now makes up 7.3% of the S&P 500 index. That’s more than Apple or Microsoft. The company is now worth more than the entire UK stock market. It’s also more valuable than the GDPs of France and Britain.
According to LSEG data, Nvidia even exceeds the combined value of the Canadian and Mexican markets.
As the AI boom continues, investors are betting big on American dominance. Nvidia is leading the charge. And while critics once warned that Trump’s trade policies would crash the economy, the numbers now tell a different story.
Wall Street seems to agree. AI is the future. And American companies, backed by strong leadership, are winning.