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Investing.com -- NVIDIA (NASDAQ:NVDA) on Wednesday became the first company in history to surpass a $4 trillion market value, as investor enthusiasm for artificial intelligence continued to fuel a dramatic rally in the chipmaker’s shares. However, the stock pulled back in afternoon trading and closed just shy of the new milestone.
NVIDIA shares closed the session up 1.8% to $162.88, just shy of the approximate $163.93 level needed to push Nvidia’s market capitalization past the $4 trillion threshold. It reached as high as $164.42 intra-day.
The strong advance comes following Nvidia’s blockbuster first-quarter results in May, which came despite China-related write-downs and concerns over DeepSeek.
At that time, Chief Executive Jensen Huang pointed to four unexpected tailwinds accelerating demand for the company’s products.
The first, he said, is a sharp uptick in demand for “reasoning AI,” or models capable of more complex and contextual inference. “It’s fairly clear now that AI is going through exponential growth,” Huang said, noting that recent progress has helped ease concerns around hallucination and reliability.
Second, Huang cited the recent rollback of international AI export restrictions, calling the move a pivotal shift for U.S. technology leadership. “President Trump wants America to win,” he said. “To do that, the American stack needs to be out in the world.”
Enterprise AI marked the third surprise. Huang highlighted rising adoption of agent-based systems in business software and noted strong momentum behind Nvidia’s RTX Pro Enterprise server platform.
Lastly, Huang said the reshoring of global manufacturing is boosting demand for industrial AI. He emphasized opportunities tied to the buildout of new factories, calling AI infrastructure “the fourth pillar,” alongside compute, storage, and networking.
“These four vectors are really kicking into turbocharge,” Huang said.
Weighing in on the milestone, NVIDIA bull Dan Ives of Wedbush called it a "historical moment" and expects the chipmaker to get some company at that valuation level over the near term.
"This is a historical moment for Nvidia, the tech space flexing its muscles, and speaks to the AI Revolution hitting its next stage of growth led by the one chip fueling AI...Nvidia," Ives commented. "The poster childs for the AI Revolution are led by Nvidia and Microsoft Corporation (NASDAQ:MSFT) as both are foundational pieces of building on the biggest tech trend we have seen in our 25 years covering tech stocks on the Street. We believe Microsoft will also hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club....as this tech bull market is still early being led by the AI Revolution."