Nvidia shares jumped more than 2% on Wednesday and topped a $4 trillion market cap for the first time ever.
The chipmaker is the first company to achieve this milestone and has benefitted from the generative AI boom.
Nvidia shares jumped more than 2% on Wednesday, topping a $4 trillion market cap for the first time as investors scooped stock in the tech giant building the hardware for the generative artificial intelligence boom.
Nvidia is the first company to ever achieve this market value.
Nvidia is the world's most valuable company, surpassing Microsoft and Apple, both of which hit the $3 trillion mark before Nvidia. Microsoft is also one of Nvidia's biggest and most important customers.
Nvidia, which was founded in 1993, first passed the $2 trillion mark in February 2024, and surpassed $3 trillion in June.
Nvidia has profited heavily off of growing demand for artificial intelligence hardware and chips since the launch of ChatGPT in late 2022. The company has positioned itself as the decisive leader in the creating the graphics processing units that power large language models.
The surge in demand has boosted shares in the chipmaking behemoth more than fifteenfold over the last five years. Shares are up more than 15% over the last month and 22% since the start of the year.
The recent rally in Nvidia has come despite geopolitical tensions and ongoing chip curbs that have hampered sales to China. Last month, Nvidia said that a recent export restriction on its H20 chips created for China would cost it $8 billion in lost sales.
“The $50 billion China market is effectively closed to U.S. industry,” Huang said during a May earnings call .
Huang previously said that getting blocked from selling chips in China would be a “tremendous loss” for the company.
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