Nvidia has officially become the first public company to reach a 'magic' $4 trillion market value. This significant milestone was achieved on Thursday, July 10, when shares of the AI chipmaker closed up 0.75% at $164.10, pushing its market capitalization to $4.004 trillion. This achievement further extends Nvidia's considerable lead over other tech giants like Apple and Microsoft, primarily due to the escalating demand for its advanced AI technologies. A Reuters report noted that the company's market value had briefly touched the $4 trillion mark on Wednesday, July 9, before ending the day slightly below at approximately $3.97 trillion. To illustrate its immense scale, Nvidia is now valued more than the combined market capitalization of all publicly listed companies in the United Kingdom.

Nvidia’s journey to this valuation has been remarkably swift, having first reached a $1 trillion market value in June 2023. In just about one year, it has tripled that valuation, demonstrating a growth rate that outpaces both Apple and Microsoft. These two companies were previously the only other US firms to hold market capitalizations exceeding $3 trillion. Nvidia's high-end AI processors are central to an intense competition among major tech industry players, including Microsoft, Amazon, Alphabet (Google's parent company), and Meta Platforms (Facebook's parent company). These companies are heavily investing in developing AI data centers, aiming to solidify their positions in the rapidly evolving technological landscape.

Despite its impressive and rapid ascent, Nvidia is not without potential challenges. The company is particularly vulnerable to ongoing trade tensions between Washington and Beijing, which have led to restrictions on the export of its most powerful chips to China. These geopolitical factors represent a significant headwind that could impact its future trajectory.

In the current market, Microsoft holds the position of the second most valuable US company, with a market capitalization of $3.73 trillion. Meanwhile, Apple's stock has experienced a 15% decline so far in 2025, bringing its market value down to $3.17 trillion. This downturn for the iPhone maker is largely attributed to its slower pace in integrating artificial intelligence into its product and service offerings compared to its competitors.