- Nvidia became the first company ever to surpass a $4 trillion market cap during intraday trading.
- It overtook Apple and Microsoft to become the most valuable company in the world.
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Despite U.S. chip export restrictions to China, Nvidia’s stock is up 22% year-to-date.
Nvidia shares jumped on Wednesday, briefly pushing the company past a $4 trillion valuation for the first time during intraday trading, a historic moment that cements its leadership in the AI hardware space.
Though the stock closed with a more modest gain of 1.8%, ending the day at a market cap of $3.97 trillion, Nvidia is now officially the world’s most valuable company, surpassing Microsoft and Apple, both of which hit the $3 trillion mark in previous years.
Founded in 1993, Nvidia reached a $2T valuation in February 2024 and $3T in June. The company has benefited immensely from surging global demand for AI chips, especially after the launch of ChatGPT.
Despite geopolitical headwinds and U.S. chip export restrictions to China, which Nvidia estimates will cost it $8 billion in lost sales, the stock remains on an upward trajectory, gaining 15% in the past month and 22% year-to-date.
CEO Jensen Huang emphasized that the loss of the Chinese market is a “tremendous setback,” but the company continues to dominate the space with unmatched GPU technology powering large language models worldwide.
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