Nvidia shares rose more than 2% on Wednesday , becoming the first publicly traded company in U.S. history to reach a market value of more than $4 trillion . The move is not just a financial record, but also a testament to the company's strategic positioning in generative artificial intelligence .
Chips powering the AI era
Founded in 1993 and based in Santa Clara, California, Nvidia has evolved from a graphics pioneer to a pillar of artificial intelligence infrastructure. Its chips are the "heart" that gives life to many AI systems and applications.
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Since the emergence of ChatGPT in late 2022, Nvidia has seen demand for its processors skyrocket ,as building and running large language models requires enormous computing power — something Nvidia has a near monopoly on.
Nvidia: From 2 to 4 trillion…. in less than a year
The company's rise is impressive even by Silicon Valley standards. In just a year or so, it went from $2 trillion to $4 trillion:
- February 2024: Market capitalization reaches $2 trillion
- June 2024: Breaks the 3 trillion barrier.
- July 2025: Nvidia becomes the first publicly traded company to surpass $ 4 trillion.
See also: US Department of Energy: Collaboration with NVIDIA & Dell for the new supercomputer
With this performance, Nvidia leaves giants like Apple and Microsoft — the latter is even its main customer, using its GPUs for training and developing AI tools.
Why is Nvidia so necessary?
Unlike other Big Tech companies that dominate the services or software market, Nvidia owns the hardware that powers the entire AI computing revolution. The H100 and B200 processors are considered essential for the most demanding AI applications — from data centers to models that analyze trillions of parameters.
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Analysts emphasize that Nvidia is the “supply nervous system” of the new artificial intelligence.
Source: www.cnbc.com
