Chipmaker cements lead in AI boom after record-breaking rally
Nvidia reached a historic milestone on Wednesday, becoming the first publicly traded company to surpass a $4 trillion market capitalization. Shares jumped 2.5% in early trading, pushing the chipmaker’s valuation past Apple and Microsoft, its closest rivals in recent months.
Fueled by surging demand for AI infrastructure, Nvidia has risen nearly 74% since April, recovering from a steep correction earlier this year. The company’s stock is up roughly 20% year-to-date and shows no signs of slowing down. Analysts now project a potential path to a $6 trillion valuation by 2028.
AI infrastructure demand drives explosive growth
Nvidia generated $44.1 billion in revenue last quarter, up 69% from the same period in 2023. Its chips are the backbone of AI data centers operated by giants like Microsoft, Amazon, and Google. Global AI infrastructure spending is projected to exceed $200 billion by 2028, and Nvidia stands at the core of that expansion.
Dan Ives of Wedbush Securities called Nvidia “the foundation for the AI Revolution” and predicts Microsoft will join it in the $4 trillion club later this year. Nvidia first hit $1 trillion in May 2023, making this new threshold a remarkable leap in just over a year.
Leadership, innovation, and global influence
Nvidia’s CEO Jensen Huang now ranks among the world’s ten richest people, with a net worth of $140 billion. Beyond Silicon Valley, Huang has become a political player, attending global events with U.S. President Donald Trump and participating in Project Stargate — a $500 billion AI infrastructure initiative meant to expand U.S. tech dominance.
At its March developer conference, Nvidia unveiled the Blackwell Ultra chip, designed to support AI models with advanced reasoning. The company continues to push the boundaries of what AI hardware can achieve, entering industries from healthcare to robotics to transportation.
Challenges remain, but dominance holds
Earlier in 2025, Nvidia shares plunged as much as 37% amid concerns over competition from China’s DeepSeek and U.S. export controls. The firm estimated a $2.5 billion revenue hit in Q1 due to restrictions on sales of its H20 chips to China. However, the company rebounded strongly, regaining investor confidence with aggressive innovation and global expansion.
Loop Capital analysts noted that Nvidia remains “essentially a monopoly” in critical AI chip technology. As the world races to adopt AI, Nvidia is positioned at the epicenter — with momentum on its side.
