NVIDIA Nears $4 Trillion Valuation Milestone Amid AI-Driven Surge
On Wednesday, NVIDIA (NASDAQ: NVDA) became the first company in history to briefly surpass a $4 trillion market capitalization, driven by sustained investor enthusiasm around artificial intelligence. However, the stock dipped later in the day, closing just below that landmark.
Shares of NVIDIA rose 1.8% to end the session at $162.88—slightly under the estimated $163.93 price needed to officially cross the $4 trillion threshold. During the day, shares climbed as high as $164.42.
This latest rally builds on the company’s standout performance in its first-quarter earnings report released in May, which exceeded expectations despite setbacks related to China and concerns over DeepSeek.
At that time, CEO Jensen Huang highlighted four unexpected growth drivers boosting demand for NVIDIA’s products.
The first, he explained, is a spike in demand for “reasoning AI”—systems capable of more advanced, context-aware inference. Huang noted that the AI sector is now experiencing exponential growth, with recent advancements addressing earlier worries about hallucination and accuracy.
Second, Huang cited the recent easing of global AI export restrictions as a major shift that strengthens U.S. leadership in the tech industry. “President Trump wants America to win,” he remarked, emphasizing the need for widespread deployment of U.S. technology.
A third growth factor is the rapid adoption of enterprise AI. Huang pointed to increasing use of intelligent agent-based tools in business software and strong traction for the company’s RTX Pro Enterprise server line.
Finally, he noted that reshoring manufacturing is fueling interest in industrial AI, as new factory development drives demand for AI-powered infrastructure. Huang called this infrastructure the “fourth pillar” of computing—alongside compute, storage, and networking.
“These four forces are accelerating dramatically,” Huang said.
Commenting on the milestone, Wedbush analyst and NVIDIA supporter Dan Ives described the moment as historic. He predicted that other tech giants would soon join NVIDIA at the $4 trillion level.
“This marks a major turning point for NVIDIA and the broader tech sector,” Ives stated. “It signals the next phase of the AI Revolution, led by the chip that’s powering it—NVIDIA.” He also pointed to Microsoft (NASDAQ: MSFT) as a key player in this shift and anticipates it will also reach a $4 trillion valuation this summer. Looking further ahead, Ives suggested that market attention may soon shift to the $5 trillion mark, adding that the current AI-driven tech rally is still in its early stages.
