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NVIDIA’s capitalization reached $4 trillion

Published by Andrii Rusanov

NVIDIA became the first company in the world to reach $4 trillion in market capitalization. It is also the most valuable company in the world and in history.

On Wednesday, NVIDIA’s total value briefly reached $4 trillion due to strong demand for its shares. The highest price did not last long, and the day ended with the company’s value at $3.97 trillion. Now the shares are holding near the round mark and have a chance to repeat the record.

NVIDIA has become the most valuable company in the world and surpassed Microsoft and Apple, which reached $3 trillion before the manufacturer of AI chips and video cards. The California-based company, founded in 1993, first surpassed the $2 trillion mark in February 2024, and exceeded $3 trillion in June.

The growing demand for artificial intelligence infrastructure has led to the growth of the GPU manufacturer more than fifteen times over the past five years. NVIDIA shares are up more than 15% over the past month and 22% since the beginning of the year. Of the semiconductor companies, only Broadcom ($1.298 trillion) and TSMC ($1.2 trillion) are among the ten most valuable companies in the world.

Other industry representatives, ASML ($313.22 billion), AMD ($226.76 billion), Texas Instruments ($197.61 billion), Arm Holdings ($161.3 billion) and Qualcomm ($175.67 billion), are far from the $1 trillion mark. Intel, a former investor favorite, is now worth only $101.26 billion.

Observers believe that investors’ optimism about Nvidia is driven by three factors. They expect the artificial intelligence industry to grow in the coming years, and the company is also expected to maintain its market leadership, as no other manufacturer currently offers similar power and scalability. Investors also hope that the US will reach trade agreements with foreign partners. However, NVIDIA CEO Jensen Huang says that the company will lose about $50 billion due to restrictions on the Chinese market.

Sources: CNBC, Tom’s Hardware