Jul 9, 2025 - Business

Nvidia becomes first member of the $4 trillion club

Nathan Bomey

A man in a black leather jacket and glasses holds a marker near a black computer tower on display at a busy tech event with people taking photos in the background. — Nvidia CEO Jensen Huang visits a stand at the VivaTech fair in Paris on June 12. Photo: Thomas Samson/AFP via Getty Images

Nvidia's market cap entered uncharted territory Wednesday, briefly surpassing $4 trillion about a year after first passing $3 trillion.

Why it matters: It's the first time any public company has ever hit that benchmark, reflecting the feverish investor interest in the AI chips giant.

Zoom in: Nvidia shares jumped above $164 in early trading Wednesday, pushing the company's market cap — its share price multiplied by its total number of shares — through the $4 trillion threshold before receding to just below that figure.

The stock was still up 1.7% on the day to $162.73 at 1:32 pm.

The big picture: Nvidia has become a bellwether stock for the AI economy as tech companies invest heavily in product development and data center capability, powering Nvidia's rise.

"This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth led by the one chip fueling AI...Nvidia," Wedbush Securities analyst and Nvidia bull Dan Ives wrote Wednesday in a research note.
He predicted that Microsoft — whose market cap was over $3.7 trillion early Wednesday afternoon — would soon follow.

Yes, but: Nvidia must navigate chip export restrictions imposed by the U.S. to curb China's ability to advance AI.

Nvidia CEO Jensen Huang has called those restrictions a "failure," saying they've had the counterproductive effect of fostering innovation in China.

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Nvidia becomes first member of the $4 trillion club

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