CALIFORNIA: Nvidia has made history by becoming the first company to reach a staggering $4 trillion in market value, a milestone underscoring Wall Street’s confidence in artificial intelligence as a transformative economic force. The chipmaker’s shares briefly surged to $164.42 in early trading before settling slightly lower, just shy of the record threshold.
Steve Sosnick of Interactive Brokers noted, “The market has an incredible certainty that AI is the future. Nvidia is certainly the company most positioned to benefit from that gold rush.” The firm, led by CEO Jensen Huang, now boasts a valuation surpassing the GDP of major economies like France, Britain, and India.
Nvidia’s rally has also buoyed broader market sentiment, with the Nasdaq closing at a fresh high. Analysts attribute part of this rebound to eased trade tensions after former President Donald Trump softened some tariff policies. However, export controls on China and lingering trade uncertainties remain challenges.
Despite these hurdles, Nvidia secured a major deal to develop AI infrastructure in Saudi Arabia during Trump’s state visit in May. Angelo Zino of CFRA Research observed, “We’ve seen the administration using Nvidia chips as a bargaining chip.”
The company’s rise reflects sustained AI enthusiasm, with shares climbing over 21% in 2025 compared to the Nasdaq’s 6.7% gain. Huang has impressed investors with innovations like next-gen Blackwell GPUs and “real-time digital twins,“ accelerating advancements in manufacturing and aerospace.
However, competition is intensifying. China’s DeepSeek disrupted the AI sector with a cost-efficient model, briefly erasing $600 billion from Nvidia’s valuation. Huang has advocated against U.S. export restrictions, framing competition as beneficial for innovation.
In Q1 2025, Nvidia reported $19 billion in earnings despite a $4.5 billion hit from China-related export curbs. Tech giants like Microsoft, Google, and Meta continue investing heavily in AI, with Nvidia maintaining its lead.
Zino added that demand for complex reasoning models is growing, positioning Nvidia at the forefront of AI agent development. Yet, rapid AI adoption raises concerns over job displacement, with firms like Ford and JPMorgan acknowledging workforce impacts.
Nvidia closed at $162.88, up 1.8%, narrowly missing the $4 trillion mark. – AFP
