SAN FRANCISCO – Silicon Valley chipmaker Nvidia on Wednesday became the first public company to surpass its $4 trillion market valuation, putting the latest exclamation point at the investor frenzy surrounding the artificial intelligence boom with industry-leading processors.
Nvidia's market value fell below $4 trillion by the time the stock market was shut down, but it highlighted the milestone that unleashed the turbulence by the biggest structural change in technology and the widespread AI epidemic since Apple Co-founder Steve Jobs unveiled its first iPhone 18 years ago. AI Bellwether Nvidia, which highlights the change in security guards, is worth $900 billion more than Apple. This made it the first public company valued at $1 trillion, $2 trillion and ultimately $3 trillion, in line with the success of the iPhone.
As Apple comes, the rise of Nvidia has struggled to realize its ambitions to inject more AI into the iPhone and other products, and many new features including many new features, including a year or more promise to make Apple smarter, a virtual assistant who often admits to providing visions for AI last month.
In the meantime, former Apple design Guru Jony Ive joins forces with Openai to work on wearable AI devices that could challenge the iPhone, while Nvidia is rushing to meet the enthusiastic demand for specialized chips that power the energy-intensive data centers that are the basis of artificial intelligence.
And Tech Giants Microsoft, Amazon, Google's parent-alphabet and Facebook's parent-meta platform have also raised AI antidesi and have budgeted collectively about $325 billion for investment in technology this year.
Nvidia's greedy appetite for chips is the main reason the company's stock price has risen 10 times since early 2023, reducing its market value from around $400 billion to $4 trillion. After first surpassing $4 trillion in the early Wednesday, Nvidia's shares fell below that threshold at a closing price of $162.88.
However, most analysts don't expect prices to remain below $163 for a long time. In signs of widespread optimism surrounding Nvidia, CFRA analyst Angelo Zino issued a research note on Wednesday, predicting that within next year the stock would rise to $196, pushing the company's market value to $4.8 trillion.
The rapid rise of Nvidia has also anointed the company's founder and CEO, Jensen Huang, as the “godfather” of AI. Huang's growing fame comes with fattening fortunes, which are now estimated at $142 billion.
It appeared Nvidia had hit a road cutoff in early April when President Donald Trump announced the sweeping tariffs, causing a widespread sale in the stock market, which was particularly violently hit by the technology sector. At Nadir, Nvidia's share price fell below $87.
However, Nvidia quickly bouncing off, delivering another great quarter highlighted with a profit of $18.8 billion in late May, despite being hit by a $4.5 billion hit given US government restrictions on selling some of its chips to China.
The Santa Clara, California company is scheduled to release its next quarterly report on August 27th.
