Nvidia Briefly Hits $4 Trillion Valuation Amid AI Boom, Outpacing Global Rivals

Last Updated Jul - 10 - 2025, 05:59 PM | Source : Fela News

Nvidia became the first company to surpass $4 trillion in market value, driven by surging AI demand and investor confidence. Despite trade hurdles and rising co

Nvidia Briefly Hits $4 Trillion Valuation Amid AI Boom

Nvidia made history on Wednesday by becoming the first company to briefly surpass a $4 trillion market valuation, underscoring Wall Street’s strong conviction that artificial intelligence will reshape the global economy. The company’s stock surged to a high of $164.42 shortly after markets opened, pushing its valuation past the $4 trillion mark before dipping slightly to close just below that threshold at $162.88, up 1.8%.

"The market is firmly convinced that AI represents the future," said Steve Sosnick of Interactive Brokers. "And Nvidia stands as the company best positioned to benefit from this AI boom." Under the leadership of electrical engineer Jensen Huang, Nvidia’s value now exceeds the GDP of countries like France, the UK, and India — a clear sign of investor belief in AI's transformative potential across robotics, automation, and beyond.

Nvidia’s rapid rise is also fueling broader market gains, with its performance significantly outpacing major indices and contributing to a fresh record high for the tech-heavy Nasdaq. The market has shown signs of relief after U.S. President Donald Trump softened his harshest tariff measures, which had previously rattled global markets in early April. While new tariffs have been introduced recently, investor sentiment has held steady.

"We’ve seen markets move away from pricing in the worst-case scenario on tariffs," noted CFRA Research analyst Angelo Zino.

Despite ongoing challenges, including U.S. export restrictions to China and general trade tensions, Nvidia's recent AI infrastructure agreement in Saudi Arabia — signed during Trump’s state visit in May — highlighted how the company might benefit from evolving U.S. trade strategies. "Nvidia chips are becoming a tool in international negotiations," Zino added.

Nvidia’s journey to the $4 trillion milestone has followed a consistent upward trend over the past two years, fueled by mounting AI enthusiasm. In 2025 alone, Nvidia’s stock has jumped over 21%, far outpacing the Nasdaq’s 6.7% gain.

CEO Jensen Huang, originally from Taiwan, has continued to impress investors with breakthroughs in GPU technology — central to generative AI, autonomous vehicles, and robotics. The company recently unveiled its next-gen “Blackwell” platform, offering greater computational power and enabling real-time digital twin capabilities that accelerate development across manufacturing, aerospace, and other industries.

However, Nvidia faced a significant setback earlier this year when Chinese company DeepSeek disrupted the generative AI space with a cost-effective, high-performance model that challenged market giants like OpenAI. Nvidia’s stock lost around $600 billion in valuation in a single session during that period.

Huang responded by welcoming the competition, while voicing opposition to U.S. export restrictions that have impacted Nvidia’s ability to serve the Chinese market.

Despite a $4.5 billion revenue hit from those export controls, Nvidia still posted impressive quarterly earnings nearing $19 billion. The strong results reaffirmed that demand for AI technologies remains robust, with major players like Microsoft, Google, Amazon, and Meta fiercely competing in the AI race.

A recent UBS survey of tech executives showed Nvidia widening its lead over competitors. Zino noted that the company’s latest stock surge reflected a deeper market understanding of DeepSeek’s role — not as a threat, but as a catalyst for investment in more advanced reasoning models.

Nvidia is now seen as a leader in the next phase of generative AI, particularly in “AI agents,” which are designed for enhanced reasoning and decision-making capabilities. “The outlook for complex reasoning models in 2026 has become more optimistic,” Zino added.

Nonetheless, the rapid advancement of AI is also stirring disruption. Executives at companies like Ford, JPMorgan Chase, and Amazon have publicly acknowledged that white-collar job losses are increasingly likely as AI tools grow more capable — a shift that until recently had been discussed only behind closed doors, according to The Wall Street Journal.