NVIDIA (NVDA) Smashes Records: First $4 Trillion Valuation as AI Frenzy Sends Stock into Stratosphere

NVIDIA just rewrote the rulebook—again. The chipmaker's stock skyrocketed past a once-unthinkable $4 trillion market cap, leaving analysts scrambling to update their price targets and Wall Street veterans muttering about 'irrational exuberance.'

AI arms race fuels the fire

Data centers can't get enough of NVIDIA's GPUs, with demand surging as enterprises rush to deploy generative AI. Every tech giant from Microsoft to ByteDance is hoarding chips like toilet paper in 2020—except these cost $40,000 apiece.

Short sellers get vaporized

The bears never stood a chance. NVDA shares gained more in three months than most FAANG stocks did in three years, proving once again that betting against Jensen Huang is financial suicide.

When the music stops...

Some hedge fund managers are quietly rotating into crypto—'just in case this turns out to be another 1999 dot-com bubble.' But for now? The AI party rages on, and NVIDIA's serving all the drinks.

TLDR

• Nvidia stock climbed 2.5%, reaching a record market cap of $4 trillion
• It surpassed Microsoft and Apple to become the world’s most valuable company
• AI chip demand and NVDA’s dominance in GPU manufacturing fueled the rally
• Geopolitical chip curbs cost Nvidia billions, but growth continues
• NVDA stock is up over 1,455% in five years, massively outperforming the S&P 500

Nvidia (NASDAQ: NVDA) has become the world’s most valuable public company, trading at $162.80 and surpassing a $4 trillion market cap for the first time.

NVIDIA Corporation (NVDA)

The milestone caps a historic run for the AI chipmaker, whose stock has surged more than 22% year-to-date and over 15-fold in five years. Nvidia’s rally continues even amid global tensions and regulatory setbacks, underscoring its central role in the artificial intelligence revolution.

Nvidia hits $4 trillion market cap, first company to do so https://t.co/XnMCGZDIII

— CNBC (@CNBC) July 9, 2025

AI Boom Drives Unprecedented Growth

Nvidia’s meteoric rise stems from its dominance in AI hardware. The company provides high-performance graphics processing units (GPUs) that power large language models and generative AI systems like ChatGPT. Since the AI boom began in late 2022, Nvidia has positioned itself as the linchpin of AI infrastructure, outpacing rivals in speed, efficiency, and innovation.

The company previously crossed the $2 trillion mark in February 2024 and broke $3 trillion just last month. This latest milestone cements Nvidia’s status as a global tech powerhouse, ahead of both Microsoft and Apple, which previously held the record for highest market capitalization.

Geopolitical Pressures and China Export Curbs

While Nvidia’s growth has been staggering, it has not come without headwinds. In May, the company revealed that U.S. export restrictions on its China-specific H20 chips WOULD cost up to $8 billion in lost sales. CEO Jensen Huang called China a “tremendous loss” and confirmed that the $50 billion Chinese market is effectively shut to U.S. semiconductor firms.

These export restrictions are part of broader geopolitical tensions between the U.S. and China, which have affected chipmakers globally. Still, Nvidia has managed to maintain investor confidence and rally through these macroeconomic challenges.

Outperformance in Context

Nvidia’s long-term returns are unmatched in the current market. Over the past year, the stock has gained 24.06%, outperforming the S&P 500’s 12.10%. The three-year return is a staggering 930.28%, and the five-year return tops 1,455.59%, compared to just 98.35% for the benchmark index.

This explosive growth reflects not only AI demand but Nvidia’s strategic moves to dominate in data center chips, gaming, and software ecosystems that support AI model training and deployment.

Tech Rally and Market Leadership Shift

Nvidia’s success is also a sign of a broader shift in tech market leadership. Analysts at Charles Schwab note that Nvidia’s climb signals new drivers of market performance, as investors reallocate capital toward companies leading AI innovation. With Microsoft as both a customer and competitor, and Apple lagging in AI, Nvidia’s leadership appears secure in the near term.

As the AI era matures, Nvidia’s role will likely expand beyond chips into full-stack AI solutions. For now, its $4 trillion valuation stands as a landmark achievement—and a signal that the AI Gold rush is far from over.