Nvidia Becomes First Company to Reach $4 Trillion Market Cap, Driving Tech Rally

Nvidia has officially entered the history books by briefly reaching a $4 trillion market valuation on July 9, 2025—the first public company ever to do so. Its shares surged roughly 2.6–2.8%, trading between $163.93 and $164.42 intraday, before the market paused on this unprecedented milestone .

This record-setting performance reflects a sustained 40% rebound since early May, triggered in part by easing U.S.–China trade tensions and lucrative AI chip deals in the Middle East The rally also signals a decisive shift in Wall Street sentiment: tech-heavy indices rose by nearly 1%, with Nvidia leading gains despite broader tariff anxieties .

Key drivers behind this achievement include:

• Dominance in AI hardware: As a leader in AI chip manufacturing, Nvidia remains central to the ongoing generative-AI boom .
• Analyst confidence: Visible Alpha reports a mean price target of $174, with most analysts rating the stock a “buy” .
• Comparative context: While Apple and Microsoft have topped $3 trillion—Apple peaked at $3.92T last December—Nvidia is the first to crack the $4T barrier .

Still, some caution is warranted. Nvidia recently warned that U.S. export restrictions to China could reduce sales by up to $15 billion . Meanwhile, competition from Chinese startups like DeepSeek and alternative AI accelerator providers could reshape the landscape .

Looking ahead:
Industry observers predict Microsoft may also cross $4 trillion soon, with Wedbush suggesting a $5 trillion “mega‑club” is within reach over the next 18 months . For now, Nvidia stands unrivaled at the apex of the AI-fueled tech resurgence.

Takeaway: Nvidia’s historic $4T market-cap milestone isn’t just symbolic—it confirms the company’s pivotal role in the AI revolution and reinforces investor confidence in the tech sector’s growth potential. However, macroeconomic risks and intensifying competition deserve attention.