David Edwards
Nvidia Corp. (NASDAQ: NVDA) has officially become the first publicly traded company to breach the $4 trillion market capitalization threshold, propelled by soaring demand for artificial intelligence (AI) infrastructure.
The chipmaker’s shares surged to an all-time intraday high of $164.32 on Wednesday before closing at $163.36 in after-hours trading, according to Google Finance. The rally, fueled by robust investor sentiment surrounding AI’s long-term commercial potential, briefly lifted Nvidia’s valuation above the $4 trillion mark—outpacing Microsoft and Apple in market capitalization rankings.
Despite a modest after-hours pullback bringing its market value to $3.98 trillion, Nvidia remains the world’s most valuable company. The calculation is based on its 24.4 billion outstanding shares.
AI at the Core of Nvidia’s Ascendancy
“The shift in enterprise capital allocation toward AI technologies underscores Nvidia’s strategic positioning,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, in a statement to Reuters.
Originally known for its dominance in gaming GPUs and cryptocurrency mining hardware, Nvidia has redefined itself as the cornerstone supplier for AI computing. “It is continuing to move forward and be a clear early winner of artificial intelligence,” noted Art Hogan, chief market strategist at B. Riley Wealth, speaking to USA Today.
Nvidia’s strategic pivot comes amid extraordinary financial performance. The company posted over $44 billion in revenue and $19 billion in net earnings for Q1, marking a 26% year-over-year increase.
Rebounding from Headwinds
Earlier in 2025, Nvidia faced a $600 billion sell-off and a $5.5 billion valuation hit amid regulatory and geopolitical concerns, including U.S. export restrictions and rising competition from Chinese AI chipmakers. Yet the firm has rebounded impressively, gaining 21.3% year-to-date—well ahead of the S&P 500’s 6.5% return over the same period.
