NVIDIA Corp. (NASDAQ:NVDA) made history on Wednesday, becoming the first publicly traded company to surpass a $4 trillion market capitalization. The chipmaker’s stock gained 2.7%, closing at $164.32—just enough to lift its valuation above the key $163.93 level required to reach the milestone.
This latest rally comes amid surging investor enthusiasm for artificial intelligence, with Nvidia positioned squarely at the heart of the AI revolution. The company’s recent first-quarter results in May shattered expectations, even as it faced headwinds from China-related write-downs and concerns around DeepSeek.
During the earnings call, CEO Jensen Huang pointed to four unexpected catalysts that are accelerating demand for Nvidia’s products.
First, Huang highlighted the growing interest in “reasoning AI”—systems capable of complex, contextual understanding. “It’s fairly clear now that AI is going through exponential growth,” he said, adding that advancements in model reliability and reduced hallucination rates are boosting adoption.
Second, he referenced recent changes to U.S. AI export policies. “President Trump wants America to win,” Huang stated. “To do that, the American stack needs to be out in the world,” calling the policy shift a crucial move for maintaining U.S. leadership in the AI space.
The third factor is the rapid rise of enterprise AI. Huang noted a surge in agent-based systems across corporate software and emphasized strong momentum for the company’s RTX Pro Enterprise server platform.
Finally, reshoring global manufacturing is fueling demand for industrial AI applications. “AI infrastructure is the fourth pillar—alongside compute, storage, and networking,” Huang said, pointing to the need for smart systems in factory buildouts.
“These four vectors are really kicking into turbocharge,” he added.
Wedbush analyst Dan Ives, a longtime Nvidia bull, called the milestone a “historical moment” for the company and the broader tech sector. “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 led by the one chip fueling AI… Nvidia,” Ives said.
He also predicted that Microsoft (NASDAQ:MSFT), another key AI player, could soon join Nvidia in the $4 trillion market cap club. “We believe Microsoft will also hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club… as this tech bull market is still early being led by the AI Revolution,” Ives added.
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