Nvidia Just Became the First Company to Hit a $4 Trillion Market Cap

Nvidia CEO Jensen Huang. (I-HWA CHENG/AFP via Getty Images)

Nvidia’s record rally just hit another milestone.

The chip maker in Wednesday intraday trading became the first U.S. company in history to hit a $4 trillion valuation, according to Dow Jones Market Data. The company led by CEO Jensen Huang reached $4.012 trillion shortly after the market opened.

Shares pulled back slightly after Nvidia achieved the milestone, closing at $162.88, up 1.8% to $3.97 trillion. Nvidia shares need to close at or above $163.93 to end the day at $4 trillion, according to Dow Jones Market Data.

Created with Highcharts 9.0.1Market capSource: FactSetNote: Today’s figures are preliminary.

Created with Highcharts 9.0.1NvidiaApple2025July2.02.53.03.54.0$4.5 trillion

The company did achieve a closing market cap record, overtaking Apple. The iPhone maker rose to $3.915 trillion on Dec. 26, the peak closing market cap for any company on record before today, according to the Dow Jones research team. Apple’s current market cap is roughly $3.15 trillion.

Nvidia shares have jumped 40% over the past three months, rebounding with the broader market after the April tariff selloff.

Demand for Nvidia’s newest chips has been driven by AI innovations such as improved reasoning models and AI agents that complete tasks autonomously. Reasoning AI models reflect more thoroughly on a query by performing numerous thought computations and searching the web for information before they respond.

OpenAI released o1 in September, followed by o3 in April. Google released a reasoning-capable Gemini model in December, while Anthropic and xAI released reasoning models in February.

On Tuesday, Bernstein estimated total investment in coming and under-construction data centers driven by AI demand has surged to $750 billion. The increase in AI expenditures is good news for Nvidia, which is the market leader for AI computing hardware and solutions.

“This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth,” Wedbush analyst Dan Ives said.

Wedbush rates Nvidia at Outperform with a $175 price target.

Nvidia is a behemoth by any measurement. At $4 trillion, the company’s market cap is larger than the bottom 216 companies in the S&P 500 combined, according to the market data researchers. It is also greater than the market cap of each of the following S&P 500 sectors: consumer staples, energy, real estate, materials, and utilities. Its valuation is also bigger than the combined market caps of Broadcom, Taiwan Semiconductor Manufacturing Co., ASML, Advanced Micro Devices, Texas Instruments, Qualcomm, Arm, Applied Materials, Micron Technology, Lam Research, and KLA Corp, according to Dow Jones Market Data.

Write to George Glover at george.glover@dowjones.com