Nvidia becomes the world’s first $4 trillion company on the back of an AI-fueled run

In a historic moment for the tech industry and financial markets, Nvidia has become the first company in history to hit a $4 trillion market capitalization, briefly crossing the milestone on July 9 and closing above it on July 10. It’s a defining achievement not just for the company, but for the new era of AI-driven market dominance.

This milestone puts Nvidia in a league of its own, surpassing Apple, Microsoft, and Saudi Aramco to become the most valuable company on the planet. Perhaps more significantly, it’s the first time a company other than Apple has led the pack through multiple trillion-dollar thresholds.

AI-led growth

Nvidia’s staggering rise can be directly attributed to the explosive growth of artificial intelligence, where it serves as the undisputed backbone. Since the debut of ChatGPT in late 2022, demand for Nvidia's graphics processing units (GPUs) has surged to historic highs.

Shares of the chipmaker have risen more than 15x in the past five years, including a 22% gain in 2025 alone. This is despite headwinds such as U.S. export restrictions on high-end chips to China and geopolitical volatility.

CEO Jensen Huang described losing access to the $50 billion Chinese market as a "tremendous loss,” but the broader demand for Nvidia’s products has more than made up for the shortfall.

The road to $5 trillion?

The climb to $4 trillion has been meteoric. Nvidia crossed the $1 trillion mark just two years ago, making this the fastest multi-trillion-dollar ascent in history.

At this pace, Nvidia’s pursuit of $5 trillion may not be far off. A jump from $4T to $5T requires just a 25% increase, compared to the 33% leap from $3T to $4T. With growth projections accelerating, many analysts believe the company is still in the early innings of its AI supercycle.

What’s driving the growth?

Two primary forces are fueling Nvidia’s momentum:

• Record capital spending from AI hyperscalers: Tech giants are investing billions into next-gen data centers. According to projections shared at Nvidia’s 2025 GTC event, global data center capital expenditures are expected to grow from $400 billion in 2024 to $1 trillion by 2028. Nvidia’s chips are the default choice in this space, putting the company at the heart of the buildout.

• Aging GPU infrastructure: The installed base of AI GPUs—pushed to the limit over the past few years—is rapidly aging. With life spans ranging from one to five years, many of the chips deployed during the early AI boom are nearing the end of their utility. This creates a massive replacement market in addition to new demand.

More than just a chipmaker

What sets Nvidia apart isn’t just the raw power of its hardware. It’s the company’s deep software ecosystem, developer tools, and unmatched vertical integration. This combination has made Nvidia essential to AI, machine learning, and the next generation of data infrastructure.

The market’s verdict

Nvidia’s $4 trillion moment is more than a financial headline. It’s a signal that the AI revolution is reshaping global markets, with Nvidia at the epicenter. In just two years, Nvidia went from crossing $1 trillion to setting a new global benchmark. If the momentum holds, $5 trillion might be closer than anyone expected.