NVIDIA Corporation has become the first publicly traded company to reach a market value of $4 trillion, briefly surpassing tech giants like Apple and Microsoft in July 2025.
Some social media accounts are saying that NVIDIA is now worth more than “basically everyone else.” What is NVIDIA, how did it get here, and why does it matter?
What is NVIDIA?
NVIDIA is a technology company based in Santa Clara, California, known for designing cutting-edge computer chips called graphics processing units (GPUs).
These chips power everything from video games and self-driving cars to artificial intelligence (AI) systems and supercomputers.
Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, NVIDIA started as a small player in the gaming industry, creating chips to make video game graphics smoother and more realistic. Over time, it evolved into a global leader in AI and computing technology.
Today, NVIDIA’s products are used in gaming (GeForce GPUs), professional visualization (Quadro/NVIDIA RTX), data centers for AI and high-performance computing, and automotive systems like the NVIDIA DRIVE platform for self-driving cars.
The company also develops software, such as NVIDIA AI Enterprise and Omniverse, to help businesses and creators build AI models and virtual worlds.
Who Owns NVIDIA?
NVIDIA is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol NVDA.
This means it’s owned by a mix of individual investors, institutional investors (like mutual funds and hedge funds), and company insiders.
As of recent data, no single hedge fund or individual owns a controlling stake, but major investors include firms like Vanguard and BlackRock, which hold significant shares due to their large investment portfolios.
Jensen Huang, NVIDIA’s CEO and co-founder, owns a notable portion of the company and is one of the world’s richest people, with a net worth estimated at $140 billion as of July 2025.
Why Is NVIDIA Worth So Much?
NVIDIA’s skyrocketing value is tied to the global boom in artificial intelligence. Since the launch of ChatGPT in late 2022, companies worldwide have raced to develop AI technologies, and NVIDIA’s high-performance GPUs are the backbone of this revolution.
These chips are essential for training complex AI models, powering everything from chatbots to medical imaging and autonomous vehicles. As demand for AI infrastructure grows, NVIDIA has become the go-to supplier, often described as having a “monopoly” in critical AI technology.
NVIDIA’s financial performance reflects this dominance. In the first quarter of 2025, the company reported revenue of $44 billion, a 70% increase from the previous year, with expectations of $45 billion in the next quarter.
Its stock has surged nearly 1,500% over the past five years, driven by investor confidence in AI’s transformative potential.
As Jensen Huang said in a May 2025 conference call, “Global demand for NVIDIA’s AI infrastructure is incredibly strong.” This optimism has pushed NVIDIA’s market cap past the combined value of entire stock markets in countries like Canada, Mexico, and the United Kingdom.
NVIDIA hit the $4 trillion mark on July 9, 2025, during intraday trading, making it the first company to achieve this valuation.
The milestone occurred on the NASDAQ, where NVIDIA’s stock price reached $160.98 at its peak that day. While the stock closed slightly lower at $159.60, giving a market cap of $3.97 trillion, it crossed the $4 trillion threshold again the next day.
This quick rise builds on NVIDIA’s earlier milestones: it reached $1 trillion in June 2023, $2 trillion in February 2024, and $3 trillion in June 2024, showcasing an unprecedented growth trajectory.
How Did NVIDIA Get Here?
NVIDIA’s journey to $4 trillion is a story of innovation, timing, and adaptability.
In its early years, the company focused on gaming chips, but a pivotal moment came when programmers discovered that NVIDIA’s GPUs could handle the complex math needed for AI training.
This shift, combined with the AI boom, propelled NVIDIA from a niche player to a global powerhouse. Unlike competitors like Intel, which focused on consumer branding, NVIDIA quietly built partnerships with tech giants like Microsoft, Google, and Meta, who rely on its chips for AI projects.
Despite challenges, like U.S. restrictions on chip exports to China costing NVIDIA $8 billion in potential sales, the company has thrived.
Recent trade deals softening tariffs and allowing limited chip sales to China have further boosted its stock. NVIDIA’s focus on innovation, such as its Blackwell chip architecture and partnerships in automotive and healthcare, keeps it ahead of the curve.
Why This Matters
NVIDIA’s $4 trillion valuation isn’t just a number—it signals AI’s growing role in reshaping industries, from healthcare to transportation.
Its dominance highlights the importance of computing power in the modern economy.
However, it also raises questions about market concentration and reliance on a single company for critical technology.
For investors, NVIDIA’s stock remains a hot topic, with analysts predicting it could reach $6 trillion by 2028 if AI demand continues.
More Important Information
- Global Impact: NVIDIA’s chips are used in supercomputers like Meta’s AI Research SuperCluster and Tesla’s autonomous vehicle systems, showing its reach across industries.
- Challenges: In January 2025, NVIDIA faced a $600 billion one-day market cap loss—the largest in U.S. history—after a Chinese startup, DeepSeek, introduced a low-cost AI model, raising concerns about NVIDIA’s pricing power.
- Innovation: In October 2024, NVIDIA launched NVLM 1.0, a family of open-source AI models with 72 billion parameters, strengthening its software offerings.
- Recognition: NVIDIA was added to the Dow Jones Industrial Average in November 2024 and ranked #3 on Forbes’ “Best Places to Work” list in 2024.
NVIDIA’s rise from a small startup to the world’s most valuable company is a testament to its ability to seize the AI moment.
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