NVIDIA Hits Historic Milestone: First $4 Trillion Market Cap Company

Taiwanese CEO of NVIDIA Jensen Huang speaks during a conference as part of the 9th edition of the Vivatech technology startups and innovation fair, at the Dome de Paris in the Porte de Versailles exhibition centre in Paris, on June 11, 2025.

Thibaud Moritz/AFP/Getty Images

NVIDIA has officially made history. On July 9, 2025, the semiconductor giant became the first publicly traded company ever to reach a $4 trillion market capitalization.

What Sparked the Surge

First, soaring demand for AI hardware is the core driver. NVIDIA’s GPUs power datacenters, generative AI, and enterprise workloads globally. Investors reacted swiftly as quarterly earnings beat expectations and AI enthusiasm soared.

Next, shares climbed to an early intraday high near $164.42, before closing at $162.88, marking the milestone with a 1.8% gain on the day. Even after retreating slightly, the record close solidified a landmark valuation.

Why It Matters

Furthermore, this milestone reflects massive investor confidence in NVIDIA’s technology. The company dominates the GPU markets, and its product ecosystem now enables AI infrastructure at unprecedented scale.

Also, its market cap now exceeds the combined value of all publicly traded companies in the UK, and it represents roughly 7.3% of the entire S&P 500 index—making NVIDIA one of the heaviest weighted stocks in the U.S. market.

Microsoft Joins the $4 Trillion Club

Just weeks later, Microsoft became the second company to join this exclusive club. On July 31, Microsoft surpassed $4 trillion following strong Q4 results, driven by 18% revenue growth to $76.4 billion and booming demand for its Azure cloud and AI services.

In particular, Azure's annual revenue topped $75 billion, and Microsoft plans $80 billion in AI infrastructure investment in 2025 to meet surging demand.

The AI Boom Fueling This Era

Notably, both milestones underscore how artificial intelligence drives market value. From chip innovation to cloud infrastructure, companies heavily invested in AI performance now dominate capital markets.

Moreover, analysts estimate global investments in AI infrastructure will exceed $7 trillion by 2030, reflecting the scale of industry transformation underway.

Broader Industry Impact

For context, only six U.S. companies have ever surpassed a $3 trillion valuation—NVIDIA, Microsoft, Apple, Alphabet, Amazon, and Meta. Now that two have cracked $4 trillion, the bar for future growth has shifted dramatically.

Still, Apple and Alphabet remain behind the curve. Microsoft and NVIDIA now hold a combined valuation slice bigger than many national markets.

Risks & Watch Points

However, some caution that the dominance of a few mega-cap tech stocks may echo past eras of market concentration. The Magnificent Seven—led by these AI giants—account for over 30% of the S&P 500 market value.

Also, geostrategic tensions and export controls—particularly affecting NVIDIA’s access to China—could introduce headwinds. But investor confidence in AI’s long-term earnings potential remains high.

Final Thoughts

NVIDIA’s ascension to $4 trillion market cap represents more than just a milestone—it’s a statement. It marks a turning point where AI isn't a sector—it’s now the backbone of global tech valuation.

With Microsoft following suit, the era of AI-led mega caps is underway. As markets evolve, these companies are shaping what growth and innovation will look like in the decade to come.