Nvidia Becomes World’s First $4 Trillion Company Amid AI Boom
New York, June 9, 2025
Nvidia Corporation (NVDA) shattered records Wednesday, reaching a $4 trillion market valuation — the first publicly traded company ever to hit the milestone. Its stock climbed 2.5% at market open, hitting an intraday high of $1,224.40 per share, cementing its dominance over tech rivals Apple ($3.77T) and Microsoft ($3.77T).
Also Read Horner Out Mekies Takes Red Bull Helm
Key Drivers of Nvidia’s Meteoric Rise
AI Infrastructure Demand:
Nvidia’s chips power data centers for Microsoft, Amazon, and Google, enabling critical AI models like ChatGPT and Gemini.
Global AI infrastructure spending is projected to exceed $200 billion by 2028 (IDC).
Explosive Financial Growth:
Q1 2025 revenue hit $44.1 billion, up 69% year-over-year.
Stock has surged ~20% in 2024 and ~74% since early April after a temporary dip.
Competitive Landscape
Overtaking Giants: Nvidia traded places with Microsoft as the world’s most valuable company in recent months before decisively surging ahead. Apple, which began 2024 at $3.9T, faltered amid tariff uncertainties.Future Rivals: Wedbush predicts Microsoft will reach $4T "this summer."
Also Read UAE's Nomination Visa Golden Residency for ₹23L
Strategic Moves & Leadership
CEO Jensen Huang’s Vision: Now the world’s 10th-richest person ($140B net worth), Huang declared AI will transform "every industry" and "every country."Product Innovation:
Blackwell Ultra chips (unveiled March 2024) enable advanced AI reasoning for robots/vehicles.
GPUs evolved from gaming hardware to AI’s "foundation" (Wedbush).
Also Read Slimmer Z Fold 7 Debuts July 9
China Export Curbs: Cost $2.5B in lost Q1 revenue due to H20 chip restrictions.
Risks and Challenges
Startup Threats: DeepSeek’s low-cost AI model spooked investors, triggering a 37% stock plunge (Jan-Apr 2024).
Geopolitical Tensions: Huang’s involvement in Trump’s $500B "Project Stargate" ties Nvidia to U.S.-China tech wars.
Analysts at Loop Capital project a $6 trillion valuation by 2028, citing Nvidia’s "near-monopoly" in AI infrastructure.
Huang insists the AI revolution is just beginning: "We’re at the start of this transformation."
"Nvidia is the foundation for the AI Revolution. This milestone signals the next stage of growth."
— Dan Ives, Wedbush Securities
— Reporting based on CNN sources and financial disclosures
Post a Comment