Chip manufacturer Nvidia has made history by becoming the first company ever to reach a $4 trillion market capitalization on Wall Street, following a significant surge in its stock value over the past several months (source). On Wednesday, the company’s share price jumped 2.8% to $164.36, surpassing the previous record set by Apple at $3.92 trillion in December 2024.

Nvidia’s success is largely attributed to its strategic focus on the booming AI sector, as it manufactures the chips that power major players in the industry, including OpenAI. The company has also recently secured significant contracts in the Middle East and benefitted from the easing of trade tensions between the U.S. and China under former President Donald Trump. The Financial Times referred to Nvidia as “the biggest beneficiary of a tech boom that has eclipsed even the height of the dotcom era.”

CEO Jensen Huang has spearheaded the company’s expansion into AI, driving hefty investments in infrastructure, including data centers, ensuring Nvidia’s competitive edge for years to come. In May, the company disclosed a 70% rise in quarterly revenues, with Huang proclaiming that the demand for its AI chips was “kicking into turbocharge” (source).

Turbocharge indeed captures this skyrocketing valuation well: Nvidia was valued at around $1 trillion just two years ago, but rapid advancements in technology, like the emergence of ChatGPT, have led to its current status. As Huang aptly put it last month, “The more AI, the better [the] bottom line. The absence of AI is the only thing I worry about.”

Recent projections by S&P Capital IQ suggest Nvidia’s revenue could approach $200 billion this year, reflecting a 55% increase year-on-year, while net income may hit $105 billion. In late June, Nvidia’s leadership, including Huang, sold $1 billion worth of shares, yet Huang retains a vast majority of his shares, with his net worth currently estimated at $138 billion, placing him as the 11th richest person globally.