Nvidia Becomes Worlds First $4 Trillion Dollar Public Company

In a historic milestone for the technology sector, Nvidia Corporation has achieved an unprecedented market valuation of $4 trillion, cementing its position as a dominant force in global markets. The California-based chip designer’s shares created this remarkable record during intraday trading, closing up $2.88 (1.8 per cent) at $162.88 in New York on Wednesday, resulting in a final valuation of $3.97 trillion.

The company’s meteoric rise from reaching its initial $1 trillion market value in June 2023 has outpaced both Apple and Microsoft, the only other American companies valued above $3 trillion. Microsoft currently holds second position with a market capitalisation of $3.74 trillion, while Apple maintains third place at $3.15 trillion.

Wedbush Securities analyst Dan Ives characterised the achievement as a watershed moment, signalling the next phase of the AI revolution. Market observers anticipate Microsoft joining the $4 trillion club this summer, with predictions of a $5 trillion milestone emerging within the next 18 months.

The organisation’s journey from its founding in 1993 by Jensen Huang and colleagues has been marked by revolutionary innovations, including the creation of the graphics processor unit (GPU) in 1999. These specialised chips now serve as crucial components in various artificial intelligence applications, including popular AI chatbots like ChatGPT and Google’s Gemini.

The company’s financial performance reflects its market dominance, reporting first-quarter revenue of $44.1 billion, representing a 69 per cent year-on-year increase. Second-quarter projections suggest revenue of $45 billion, with share values climbing more than 22 per cent this year.

Nvidia’s significance in global markets is further emphasised by its 7.3 per cent weighting on the S&P 500, surpassing both Apple and Microsoft. The company’s total value now exceeds the combined market capitalisation of all publicly listed companies in Canada, Mexico, and the United Kingdom, underlining Wall Street’s robust confidence in the artificial intelligence sector.