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Nvidia has become the first company in history to reach a market value of $4 trillion. On Wednesday (July 9), Nvidia's stock rose more than 2%, pushing the company's market cap past this unprecedented milestone. The California-based tech giant, founded in 1993, has surpassed other leading companies like Microsoft and Apple, which previously reached the $3 trillion mark.
Nvidia's growth is largely attributed to the surge in demand for hardware used in generative artificial intelligence. The company has established itself as a leader in producing graphics processing units essential for powering large language models. Since the launch of ChatGPT in late 2022, Nvidia's shares have increased more than fifteenfold over the past five years. Shares have risen over 15% in the past month and 22% since the start of the year.
Despite reaching this milestone, Nvidia faces challenges due to geopolitical tensions and chip export restrictions. Last month, the company reported that recent export restrictions on its H20 chips, designed for China, could lead to an $8 billion loss in sales. Nvidia CEO Jensen Huang stated, "The $50 billion China market is effectively closed to U.S. industry," during a May earnings call.