Nvidia Corp (NASDAQ:NVDA, ETR:NVD) has made history as the first company to briefly surpass a US$4 trillion market capitalisation, underscoring its dominance at the forefront of the artificial intelligence (AI) boom and helping power a broader rebound across Wall Street’s tech sector.
Shares in the AI-chip juggernaut closed up 1.8% at US$162.88, putting its market value at US$3.97 trillion. Earlier in the session, Nvidia peaked at US$164.42 — enough to briefly tip over the US$4 trillion threshold. It now holds a roughly US$200 billion lead over Microsoft, currently the world’s second-most valuable company.
The rally helped the Nasdaq Composite climb 0.94% overnight, outpacing gains in the S&P 500 (+0.61%) and Dow Jones (+0.49%). Tech was the second-best performing sector on the day, with other big names including Broadcom (+2.2%), Meta (+1.6%) and Amazon (+1.4%) joining in the advance.
AI boom cements Nvidia’s market dominance
Nvidia’s rapid ascent has been fuelled by its central role in powering the generative AI wave, with its graphics processing units (GPUs) becoming critical infrastructure for everything from chatbots to large language models.
“Global markets have rallied strongly since bottoming in early April, and overnight, we’ve seen two huge assets hit major milestones; Nvidia has become the first company to ever top a USD$4 trillion market cap, and bitcoin hit a new all-time high,” said Josh Gilbert, market analyst at eToro.
“Nvidia‘s meteoric rise highlights the sheer momentum of this AI boom, which isn’t showing any signs of slowing down. Nvidia has become the heartbeat of the market, making up around 7.5% of the S&P 500 and nearly 10% of the Nasdaq 100.”
Gilbert added that Nvidia defines the AI era in the same way Apple symbolised the smartphone era.
“Its last earnings in May solidified its position with continued growth, margins most businesses would envy, and a war chest that gives the company the firepower to keep innovating,” he said.
Analysts raise targets as momentum builds
Research house CFRA this week raised its 12-month price target on Nvidia to US$196 from US$165, maintaining a ‘Buy’ rating. The firm cited increased visibility on earnings from AI infrastructure demand and said it expects margin upside as Nvidia’s next-generation Blackwell platform ramps up.
“We are optimistic about the content growth story for NVDA, which we see gaining traction through 2027 given its pipeline, TAM expansion, and software opportunities across the data centre stack,” CFRA analysts said.
Despite ongoing trade tensions and risks tied to US semiconductor investigations, the firm believes Nvidia’s near-term outlook remains robust.
Market watchers eye who’s next
The milestone also sharpened focus on which tech titan could be next to cross the US$4 trillion threshold. Daniel Ives, tech analyst at Wedbush, sees Microsoft closing in fast.
“The poster children for the AI revolution are led by Nvidia and Microsoft as both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks on the Street,” he said in a research note, predicting Microsoft will reach the $4 trillion mark this year.
For now, Nvidia holds the crown — the first to breach a valuation once thought years away, driven by a megatrend that continues to reshape the market.