📌Key Takeaways

• ✅ NVIDIA briefly became the first company in history to surpass a $4 trillion market cap, achieving the NVIDIA $4 trillion market cap milestone in market value.
• 💸The stock closed just under the threshold, ending the day at $162.88, marking a significant moment despite missing the full $4 trillion valuation.
• 🧠Investor enthusiasm remains high, fueled by strong AI demand and Q1 earnings
• ✅CEO Jensen Huang highlighted four major growth drivers behind NVIDIA’s momentum
• 📉Analysts expect Microsoft to join the $4T club soon, as AI continues to drive tech stocks

NVIDIA (NASDAQ:NVDA) briefly crossed a historic milestone on Wednesday, becoming the first company ever to reach a $4 trillion market capitalization, a moment that signals just how central artificial intelligence has become in today’s economy. ⚡

Although the stock pulled back slightly in afternoon trading and closed just shy of that mark at $162.88, investor sentiment remains overwhelmingly bullish. Achieving the NVIDIA $4 trillion market cap would necessitate surpassing $163.93 during trading.

📈 Summary Table

✅The Power Behind the Surge

The rally builds on NVIDIA’s impressive first-quarter earnings, which defied concerns tied to China-related write-downs and competitive challenges like DeepSeek.

CEO Jensen Huang cited four unexpected tailwinds now accelerating the company’s growth:

1. Reasoning AI: Advanced inference capabilities are driving demand for next-gen chips. Huang emphasized that “AI is going through exponential growth,” especially with improvements that reduce hallucinations and boost reliability.
2. Rollback of AI Export Restrictions: Huang praised the easing of international limitations on U.S. AI technology, calling it a major step toward global tech leadership. “President Trump wants America to win,” he noted, advocating for global deployment of the “American stack.”
3. Enterprise AI Boom: Businesses are rapidly adopting agent-based AI systems, boosting momentum behind platforms like NVIDIA’s RTX Pro Enterprise servers.
4. Industrial AI Resurgence: The reshoring of manufacturing worldwide is spurring new demand for AI infrastructure in factory buildouts. Huang dubbed AI “the fourth pillar,” alongside compute, storage, and networking, aiming at targets like the potential NVIDIA $4 trillion market cap.

“These four vectors are really kicking into turbocharge,” Huang said during the May earnings call.

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Analysts: Microsoft May Be Next

Wedbush analyst Dan Ives called NVIDIA’s $4T valuation “a historical moment,” reflecting how the AI revolution is reshaping tech. He predicts Microsoft (NASDAQ:MSFT) will soon join NVIDIA in the $4 trillion club, suggesting the potential for both companies to achieve the NVIDIA $4 trillion market cap status.

“The tech space is flexing its muscles,” Ives said. “The AI revolution is entering its next stage, with NVIDIA and Microsoft at the core.”

Ives added that the market may shift focus toward a $5 trillion club within the next 18 months, as the current tech bull market appears far from over.

💬Final Thoughts

Though NVIDIA narrowly missed closing above the $4 trillion mark, its rapid rise marks a turning point in the AI era. With new growth vectors and analyst confidence running high, the company’s trajectory remains one to watch.

📢 Do you think NVIDIA will become the first $5 trillion company? Drop your thoughts in the comments or check out our coverage on Microsoft’s AI push.

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