Nvidia just did what no company has ever done before — it officially closed a trading day with a jaw-dropping $4 trillion market cap, cementing its status as the undisputed king of the AI chip world. After briefly crossing the milestone on Wednesday and dipping, Nvidia came roaring back on Thursday to seal the record.
President Trump wasted no time taking a victory lap on Truth Social, cheering Nvidia’s feat as proof that the economy’s booming — and seizing the moment to blast Fed Chair Jerome Powell for keeping interest rates high. According to Trump, if Nvidia’s soaring stock is any indication, it’s time for Powell to cut rates.
So, how did Nvidia pull this off? The stock is up 21% so far this year, rebounding sharply from January’s panic when China’s DeepSeek claimed it could train powerful AI without top-shelf Nvidia chips. That bombshell wiped $600 billion from Nvidia’s value — but the panic didn’t last. DeepSeek’s claim fizzled, and Nvidia’s dominance in high-end AI training hardware held strong.
Some doubted the need for pricey training chips as AI shifted from development to deployment (known as inferencing), but Nvidia’s processors have proven just as crucial in this context — faster chips mean quicker answers for complex AI queries.
Meanwhile, Nvidia is expanding beyond its cloud computing giants — Amazon, Google, and Microsoft — into sovereign AI, supplying thousands of chips to countries like Saudi Arabia and European nations that are keen on developing homegrown AI data centers.
Even hefty export bans to China haven’t dented investor confidence. Despite an $8 billion hit this quarter, the stock continues to set records, while AMD, Intel, and big tech’s homegrown chips still lag far behind.
With AI only heating up, Nvidia’s historic $4 trillion milestone may just be the beginning.
