Nvidia shattered financial records on Wednesday, July 9, 2025, becoming the world's first company to achieve a $4 trillion market valuation. The chipmaker's shares rose 2.5% during trading, pushing it over the historic threshold and solidifying its position as the world's most valuable public company.
The achievement comes amid extraordinary growth in Nvidia's core AI chip business. The company has tripled its market value in just two years, having first reached the $1 trillion mark in June 2023. This rapid ascent has outpaced tech giants like Microsoft and Apple, with Microsoft currently holding the second position at approximately $3.75 trillion.
Nvidia's dominance stems from its commanding 80-95% share of the AI chip market, with its graphics processing units (GPUs) forming the backbone of artificial intelligence infrastructure worldwide. Despite having the industry's most expensive AI chips, customers continue choosing Nvidia's products due to their superior performance and the company's comprehensive software ecosystem.
The company's financial performance reflects this dominance. In its most recent quarter ending April 2025, Nvidia reported revenue of $44.1 billion, up 69% year-over-year, with data center revenue reaching a record $39.1 billion. CEO Jensen Huang noted a "sharp jump in inference demand" for the company's latest Blackwell chips, which saw the fastest product ramp in Nvidia's history.
However, Nvidia faces growing challenges. Recent U.S. export restrictions on its H20 chips to China cost the company approximately $8 billion in potential revenue. Meanwhile, competitors including AMD, Google, and Microsoft are developing their own AI accelerators, while Chinese innovations like DeepSeek's efficient AI model have temporarily rattled investor confidence.
Despite these headwinds, analysts remain bullish on Nvidia's prospects. As Brook Dane of Goldman Sachs Asset Management noted on the day Nvidia reached $4 trillion: "We're at the early stages of the biggest tech transformation we've seen in decades."