Nvidia has become the first company in history to reach a market value of 4 trillion US dollars, solidifying its dominant position in the global financial market.
On Wednesday, the company’s share price rose 2.8% to $164.42, breaking through this milestone and marking a stunning rebound after a difficult start to the year when spending concerns sparked by China’s DeepSeek and President Donald Trump’s trade war dampened risk sentiment.
The stock rose by more than 20% in 2025 and has climbed by over 1,000% since the beginning of 2023. Nvidia currently accounts for 7.5% of the S&P 500 index, approaching its highest influence on record.
The latest catalyst for Nvidia’s share price rise is the commitment of its largest customers to artificial intelligence spending, indicating that the demand for its computing systems remains strong. These customers include tech giants Microsoft Corporation, Meta Platforms Inc., Amazon.com Inc. and Alphabet Inc. According to the average forecast compiled by Bloomberg, these companies are expected to invest approximately $350 billion in capital expenditure in the next few fiscal years, up from $310 billion in the current fiscal year. These companies contribute more than 40% of Nvidia’s revenue.
Brian Mulberry, a portfolio manager for Zacks Investment Management, said, “Clearly, there is a huge demand for Nvidia’s chips in the market.” He added that Nvidia’s products are essential for the next stage of artificial intelligence, and the market has refocused on this during the rapid rebound since April. “The performance over these 90 days has been quite outstanding. There’s no doubt about that.”
After the turmoil in the first half of 2025, investors have returned to the artificial intelligence sector. In January, the emergence of DeepSeek raised concerns that huge spending in the AI field was about to decline, causing the share prices of Nvidia and other AI companies to plummet. In April, President Trump’s tariff threats intensified concerns about the global macroeconomic backdrop and triggered further selling. Investors usually rush to buy when Nvidia’s share price drops, but now they are selling off high-priced stocks and turning to defensive sectors instead.
Nvidia’s share price soared again in May as progress in trade negotiations encouraged investors to return to riskier assets. This followed the company’s earnings report, which showed that spending by its major clients was in full swing. The chipmaker’s performance announced at the end of the month solidified its leading position in the field of artificial intelligence, and the comments made by CEO Jensen Huang on global industry trends had the same effect.
Ken Mahoney, president of Mahoney Asset Management, said the next potential catalyst for further gains in Nvidia’s share price could be the upcoming earnings season.
What we need to see is whether the company will, as usual, exceed expectations and raise its earnings guidance,” he said. He also added that Nvidia’s valuation is currently below its ten-year average, indicating there is still room for growth. The stock’s forward price-to-earnings ratio is about 33 times.
Maoni said, “Considering their income growth, you actually wouldn’t think it’s too expensive. In fact, to keep up with the profit growth, it’s worth it.”
Wall Street has long been bullish on the company. Nearly 90% of the analysts tracked by Bloomberg have given the company’s stock a rating equivalent to “buy”. In addition, the average target price of analysts predicts that the company’s share price will rise by slightly more than 6% in the next 12 months.
There are only a few companies with a market value close to Nvidia’s 4 trillion US dollars. Microsoft’s valuation is approximately 3.7 trillion US dollars, while Apple’s valuation is as high as 3.1 trillion US dollars.
