By John Meyer, consultant in financial affairs – Eurasia Business News, July 10, 2025. Article no. 1609

Nvidia became the world’s first $4 trillion company primarily due to its dominance in the AI chip market, which has fueled an unprecedented rally in its stock price. The company’s high-performance graphics processing units (GPUs) are essential for powering large language models and generative AI systems like ChatGPT, making Nvidia the backbone of the AI infrastructure boom.

The chip design leader’s stock advanced 2.4% to $164, benefiting from the continued increase in demand for artificial intelligence technologies.

Key factors behind Nvidia’s historic rise include:

  • AI Boom Leadership: Since the AI surge began in late 2022, Nvidia has outpaced competitors in speed, efficiency, and innovation in AI hardware, driving massive demand for its GPUs.
  • Diversified Origins: Nvidia started as a gaming chip maker, expanded into crypto mining chips, and has now become the leading chipmaker for AI computing power, reflecting its ability to reinvent itself over time.
  • Strong Financial Performance: Nvidia’s stock has surged over 1,455% in five years, with shares climbing more than 22% year-to-date in 2025 alone. It crossed $2 trillion in market cap in early 2024, $3 trillion just last month, and then $4 trillion in July 2025.
  • CEO Jensen Huang’s Vision: Leadership under Huang has been pivotal, with a focus on innovation and capitalizing on emerging tech trends, helping Nvidia become a household name and a tech powerhouse.
  • Embedded in Multiple Growth Sectors: Nvidia’s chips are critical not only for AI but also for gaming, data centers, and crypto mining, creating multiple revenue streams and broad market relevance.

Nvidia’s rise reflects the broader technology shift toward AI, with the company positioned to capture a significant share of the projected $200 billion AI infrastructure spending by 2030. This milestone also marks Nvidia as a central player in the global economy and the AI revolution, surpassing tech giants like Microsoft and Apple in market valuation.

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In June 2024, it became known that Nvidia became the first computer chip company in history, the market capitalization of which reached $3 trillion. The company overtook Apple and was second only to Microsoft. The last time Nvidia was worth more than Apple was in 2002, five years before the first iPhone came out.

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© Copyright 2025 – Eurasia Business News. Article no. 1609.