NVIDIA Becomes The First Company To Reach A $4 Trillion Market Capitalization

If you’ve ever waited for a GPU restock alert, observed the difference in frame rates and quality with a new graphics card, or edited videos that rendered like a dream—you’ve likely experienced NVIDIA’s power firsthand!

For years, NVIDIA has been the name behind smoother gameplay and sharper visuals, but in the last few years, its claim to fame came from its powerful GPU chips that formed the backbone of the artificial intelligence (AI) revolution.

From powering Large Language Models (LLMs) to accelerating autonomous vehicles and enterprise data centers, NVIDIA quietly became the company driving the future of computing, propelling it to the top of the most valuable companies by market capitalization.

This rise to fame has taken the company to a new landmark.

NVIDIA made history by becoming the first publicly traded company to reach a $4 trillion market capitalization, albeit briefly—a moment fueled by its dominance in AI chipmaking and continued investor confidence in the generative artificial intelligence (GenAI) boom.

As if that wasn't enough, NVIDIA-backed startup Perplexity AI unveiled Comet, an AI-powered web browser set to challenge the reign of Google Chrome, on the same day.

So, what’s fueling NVIDIA’s record-breaking momentum—and how is it expanding beyond chips into the software shaping our digital experiences?

Let’s break it down.
 

NVIDIA Becomes First-Ever $4 Trillion Company

On July 9, NVIDIA’s shares rose as much as 2.8% to a record $164.42, briefly lifting its market cap above the $4 trillion mark—a global first in public markets.


The stock closed 1.8% higher, valuing the company at around $3.97 trillion by the end of the day.

This historic milestone comes just over a year after NVIDIA first crossed the $1 trillion mark in June 2023, tripling its valuation faster than Apple and Microsoft. Now it holds a 7.3% share of the S&P 500, outpacing even Apple and Microsoft’s individual weightings.

The company’s value now exceeds the entire UK stock market and the combined markets of Canada and Mexico, according to LSEG data.

Analysts such as Robert Pavlik (Senior Portfolio Manager, Dakota Wealth, New York Metropolitan Area) say the stock’s rise reflects how “companies are shifting their asset spend in the direction of AI,” with NVIDIA viewed as the backbone of AI infrastructure.

"It is another milepost along the road in this amazing story of a company that continues to reinvent itself,” said Art Hogan, Chief Market Strategist at B. Riley Wealth. “It started out as being a gaming chip and then a crypto mining chip maker and now as a chipmaker for artificial intelligence computing power.”

That spirit of reinvention is exactly what’s powering NVIDIA’s ascent—and fueling investor confidence in its long-term vision,
 

NVIDIA’s Investor Sentiment And Market Outlook

NVIDIA has surged 74% since April, recovering from fears sparked by China’s DeepSeek AI model and geopolitical tensions.

Despite trade restrictions, the company reported Q1 revenue of $44.1 billion, a 69% increase year-over-year.

For Q2, NVIDIA expects revenue to reach $45 billion (±2%), with official results due on August 27.

Its 12-month forward price-to-earnings ratio stands at 32, below its three-year average of 37, suggesting it’s still attractively valued relative to growth.


NVIDIA's rally has boosted the broader market, helping the S&P 500 and Nasdaq hit fresh highs amid optimism on AI investments.

"It's a continuing reflection of investors wanting to be on the right side of the AI movement, and NVIDIA is kind of the golden child for AI investment,” said Chuck Carlson, CEO of Horizon Investment Services. “The company is still putting up growth numbers. It clearly is the leader in that field, and it's a must-have if you want exposure to AI and generative AI and accelerated computing.”

While investor sentiment remains strong, the real test lies in how NVIDIA navigates growing competition and evolving market dynamics.
 

Can NVIDIA Maintain Its AI Lead?

Some analysts warn of growing risks: Amazon, Microsoft, and Meta are increasingly designing their own chips, potentially reducing reliance on NVIDIA.

“There’s a risk to investors of Amazon, Microsoft and Meta designing their own chips and working around NVIDIA and not using them much, relying on their own designs. That’s competition,” said Michael Ashley Schulman of Running Point Capital.

“There’s also the risk of quantum computing. Nvidia says quantum computing is still 10 to 15 years away. But that’s because they don’t have a quantum chip. Other people think quantum computing may be only 5 to 7 years out and it could easily surpass Nvidia in capabilities.”

However, demand for NVIDIA’s AI chips remains robust. Analyst Gil Luria noted, “It will continue to be the main provider of AI computer hardware into an insatiable market for AI data centers.”

Dan Morgan of Synovus Trust pointed to surging capex by tech giants, saying, “Amazon, Microsoft, Meta and Alphabet are collectively estimated to spend north of $330 billion in capex in 2025 to build out their AI presence.” In comparison, the combined CAPEX in 2024 was around $240 billion.

The question now is: Will NVIDIA’s Blackwell chip series help sustain its growth trajectory?
Either way, NVIDIA is growing its portfolio in AI services and platforms, and is shaping the next phase of its evolution.
 

NVIDIA-Backed Perplexity Launches AI Browser ‘Comet’

On the same day as NVIDIA’s historic valuation peak, its AI startup partner Perplexity AI launched Comet, a new web browser powered by agentic AI.


Comet enables users to ask questions, summarize content, compare products, and book meetings—all within one interface—whille transforming traditional web navigation by offering an assistant-like experience that thinks, acts, and decides on behalf of users.

To ensure privacy, Comet stores data locally and avoids training models on personal user information.

Currently available via invite-only and to Perplexity Max ($200/month) subscribers, broader access is expected later this year.

Perplexity, which is also backed by Jeff Bezos, SoftBank, and others, also launched a publisher partnership program to address concerns from media outlets like News Corp and Dow Jones, who allege unlicensed content use.

While Perplexity’s Comet is on course to reignite browser wars by integrating GenAI at the core of the browsing experience, NVIDIA is set to announce its Q2 earnings on August 27, with close attention on enterprise AI chip demand and Blackwell chip adoption.

Do you think NVIDIA’s $4 trillion feat is just the beginning—or are storm clouds brewing for the AI chip leader? Do you think Perplexity’s Comet could steal Google’s market share?

Let us know in the comments below!