Key Points
- Nvidia briefly reached a $4 trillion market value, the first company ever to do so.
- The surge is driven by the huge demand for its chips, which power the AI industry.
- Its growth has been incredibly fast, tripling its value from $1 trillion in about a year.
- The company is now worth more than the combined stock markets of Canada and Mexico.
Nvidia made history on Wednesday, briefly becoming the first company in the world to be worth $4 trillion. The chip designer’s stock soared thanks to the massive, ongoing boom in artificial intelligence. The milestone solidifies its spot as Wall Street’s favorite stock. It puts it ahead of tech giants like Microsoft and Apple.
Nvidia’s incredible rise shows just how much investors believe in the future of AI. The company’s powerful chips are the engine behind this technological revolution. Its growth has been explosive.
Nvidia hit a $1 trillion value just a year ago and managed to triple it faster than both Apple and Microsoft ever did. To put its size into perspective, Nvidia is now worth more than the combined stock markets of Canada and Mexico.
The stock’s journey this year hasn’t been a straight line up. It had a sluggish start and took a hit in April, along with the rest of the market, due to concerns over trade tariffs. But it has since rebounded strongly, helping to lift the entire S&P 500 to new highs.
Still, there are some challenges ahead. Large customers, such as Amazon and Microsoft, are facing pressure to manage their substantial spending on AI chips. At the same time, rivals like AMD are working hard to create more affordable alternatives, aiming to capture some of Nvidia’s market share.
For now, though, Nvidia’s business is booming. The company reported a massive $44.1 billion in revenue for its first quarter, a 69% jump from the previous year. It expects that growth to continue, forecasting around $45 billion in revenue for the second quarter.
