Nvidia reaches historic $4 trillion market value amid AI boom
- Nvidia reached a $4 trillion market value, becoming the first public company to do so.
- The surge in Nvidia's value is largely driven by the demand for AI technologies and infrastructure.
- Analysts predict Nvidia could expand its market cap to $6 trillion by 2028 amid growing AI investments.
In July 2025, Nvidia reached a historic milestone, achieving a market value of $4 trillion, making it the first publicly traded company to do so. The US-based chipmaker has significantly benefited from the surge in artificial intelligence investments, playing a key role in powering AI infrastructure for major technology firms like Microsoft, Amazon, and Google. With global spending on AI infrastructure expected to surpass $200 billion by 2028, Nvidia's position has solidified its status as a leader in the industry. Nvidia’s rise has been impressive; after hitting $1 trillion in May 2023, the company's market value soared by around 20% this year alone. This growth is attributed to its leading position in developing chips essential for AI functionality, especially since these chips are crucial for data centers utilized by major tech giants to support their AI models and cloud services. Despite its current success, Nvidia has also faced challenges. Earlier in the year, the company dealt with trade issues and competition from cheaper AI models introduced by a Chinese startup, which temporarily impacted its stock value. Moreover, Nvidia reported a $2.5 billion revenue miss for the fiscal quarter ending April due to export restrictions imposed on its AI chips to China. As the AI race accelerates between the United States and China, Nvidia has remained a central player in this evolving landscape as it navigates potential regulatory hurdles and an increasingly competitive marketplace. Nvidia's founder and CEO, Jensen Huang, has seen his personal wealth rise, positioning him as one of the wealthiest individuals globally, as of June 2025. Analysts predict strong growth ahead for Nvidia, with estimates suggesting that the company could reach a market cap of $6 trillion by 2028. This projection aligns with trends indicating the ongoing escalation in AI investment and infrastructure needs, reinforcing Nvidia's role at the forefront of a technology revolution critical to various industries worldwide.