Inbizzy — Nvidia has made history by becoming the first publicly traded company in the world to reach a market capitalization of $4 trillion. This milestone was achieved on July 9, 2025, following a 2.5% surge in its stock price to approximately $164 per share. With this gain, Nvidia surpassed the market value of Microsoft (approximately $3.7 trillion) and Apple (around $3.28 trillion), securing its position as the most valuable company globally.
The company’s rapid ascent comes just over two years after it crossed the $1 trillion mark in June 2023. Much of this growth is attributed to Nvidia’s pivotal role in the artificial intelligence (AI) ecosystem. The Santa Clara-based firm produces high-performance graphics processing units (GPUs), which are essential for building and operating AI systems. These chips are now widely deployed across various sectors, including AI-powered chatbots, hyperscale data centers, and advanced supercomputers.
Nvidia’s financial performance has further fueled investor confidence. In the first quarter of fiscal year 2026, the company reported revenue of $44.1 billion—up 69% compared to the same period last year. Looking ahead, Nvidia forecasts revenue exceeding $45 billion in the current quarter, driven by sustained global demand for AI and computing infrastructure.
From a valuation standpoint, Nvidia stock is currently trading at a forward price-to-earnings (P/E) ratio of around 32, slightly below its three-year average. Nevertheless, Wall Street remains bullish. Most analysts maintain a “buy” rating on the stock, with average price targets approaching $175 per share. Some market watchers even believe Nvidia could hit a $5 trillion valuation in the near future, especially if AI adoption continues to accelerate. Year-to-date, Nvidia’s stock has climbed about 22% and now represents more than 7% of the S&P 500 index.
Nevertheless, Nvidia continues to face significant headwinds. The company is navigating U.S. government restrictions on the export of advanced chips to China—one of its key international markets. As a result, Nvidia recorded a $4.5 billion inventory charge in the first quarter of fiscal year 2026 related to its H20 AI chips, and lost an estimated $2.5 billion in potential sales during the same period. These export controls are expected to have a continued impact, with potential losses projected to reach $8 billion in the following quarter.
Meanwhile, competition from Chinese AI startup DeepSeek has added further pressure. The rival firm introduced high-performance AI models at significantly lower prices, which led to a sharp sell-off that wiped $600 billion from Nvidia’s market value in a single day in January 2025. In addition, Nvidia has been under antitrust scrutiny by the U.S. Department of Justice since mid-2024, with the investigation still in its preliminary phase.
