Nvidia Corp, the US-based semiconductor and AI chipmaker, has become the world’s first publicly traded company to touch a market capitalisation of USD $4 trillion. This milestone reflects global investor confidence in Nvidia’s pivotal role in driving the AI revolution, automation, robotics, and future digital economies.
Key Highlights
- On reaching $164.42 per share, Nvidia’s valuation briefly crossed $4 trillion, although it closed slightly below that level.
- Nvidia holds the largest weight (7.3%) in the S&P 500 index, surpassing tech giants Apple (~7%) and Microsoft (~6%).
- Its market value is now greater than the GDP of countries like India, UK, and France, and exceeds the combined market cap of Canadian and Mexican stock exchanges.
Factors Behind Nvidia’s Surge
- AI Boom: Investor sentiment is heavily buoyed by the global acceleration of AI technologies, where Nvidia’s GPUs (Graphics Processing Units) are central to powering AI models in:
- Generative AI
- Robotics
- Autonomous driving
- Supercomputing & Digital Twins
- Blackwell Chip Series: Nvidia’s next-gen Blackwell chips offer super-processing power and support real-time digital twin simulations, revolutionising industries like aerospace and manufacturing.
- Strong Earnings: In the most recent quarter, Nvidia posted ~$19 billion earnings despite a $4.5 billion hit from U.S. export restrictions on sales to China.
- Global Impact:
- Share price rise in 2025: +21% vs Nasdaq +6.7%
- Recovery in global equity markets partially linked to Nvidia’s performance
- Bolstered further by reduced geopolitical risks (e.g., rollback of proposed U.S. tariffs)
Strategic Position in AI Ecosystem
- AI Agents: Nvidia leads in developing AI agents—systems with reasoning and inference capabilities.
- Widening Lead: A UBS survey of tech executives showed Nvidia’s growing dominance over AI hardware rivals.
Challenges & Disruptions
- In early 2025, China’s DeepSeek launched a low-cost, high-performance generative AI model, briefly shaking global tech stocks.
- Nvidia lost $600 billion in market value in a single session during this time.
- However, the threat was short-lived; Nvidia’s long-term business fundamentals remained strong.
Leadership
- CEO: Jensen Huang, Taiwan-born electrical engineer, credited with pioneering Nvidia’s rise through technological innovation in GPUs and AI architecture.
Key Facts:
- Founded: 1993
- Headquarters: Santa Clara, California, USA
- Core Products: GPUs, AI chips, data center systems, edge computing solutions
- Ticker Symbol: NVDA (on NASDAQ)