Nvidia (NASDAQ:NVDA) rose over 2% on Wednesday, hitting a $4 trillion market capitalization for the first time as investors optimism for AI continued to ignite a rally in the chipmaker’s shares.
Nvidia, which became the first company to ever achieve this market value, surpassing tech giants Apple (AAPL) and Microsoft (MSFT), was trading at $164.21 in the morning, after ending 1.1% higher on Tuesday.
The Santa Clara, Calif.-based company, which designs high-end AI chips, first surpassed the $2 trillion mark in February 2024, while it hit the $3 trillion mark in June this year.
Nvidia’s chips have been in high demand by companies building AI models as they need faster computing capacity, especially after the launch of ChatGPT in 2022.
However, the Jensen Huang-led company earlier this year faced pressure when investors expressed concerns about the U.S.-China tech tussle and fears of cheaper AI models from the likes of Chinese AI startup DeepSeek entering the market. January 27 saw around $589B erased from Nvidia’s market cap after DeepSeek unveiled its AI model R1.
Nvidia gained 22% so far this year, compared to the 6% rise in the broader S&P500 Index.
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