Nvidia Beats Apple and Microsoft to Set New Tech Milestone

Nvidia has made history as the first publicly traded company to reach a $4 trillion market valuation, surpassing tech giants Apple and Microsoft in a milestone driven by its pivotal role in the artificial intelligence (AI) boom. On Wednesday, Nvidia’s stock rose 2.5% at market open, hitting an intraday record high that pushed its market cap beyond the $4 trillion mark.

Nvidia Beats Apple and Microsoft

A Meteoric Rise Fueled by AI

Nvidia’s ascent has been nothing short of remarkable, with its stock soaring approximately 20% in 2025 alone. The company’s dominance in providing high-performance chips for AI data centers has positioned it as the backbone of the AI revolution. Its graphics processing units (GPUs), originally popularized among PC gamers, now power the infrastructure for AI models and cloud services used by industry leaders like Microsoft, Amazon, and Google.

Global spending on AI infrastructure is projected to exceed $200 billion by 2028, according to the International Data Corporation, underscoring the growing demand for Nvidia’s technology. The company reported $44.1 billion in revenue for the quarter ending April 2025, a 69% increase from the previous year, reflecting its critical role in the tech ecosystem.

“Nvidia is the foundation for the AI Revolution,” said Dan Ives, an analyst at Wedbush Securities, in a June 27 research note. “This is a historical moment for Nvidia and the tech space, flexing its muscles as the AI Revolution hits its next stage of growth.”

Outpacing Tech Titans

Nvidia’s climb to $4 trillion comes after a tight race with Apple and Microsoft, which have traded places as the world’s most valuable companies in recent months. Apple, which started 2025 with a $3.9 trillion valuation, faced challenges amid tariff uncertainties under President Donald Trump, while Microsoft currently sits at approximately $3.77 trillion. Ives predicts Microsoft could also cross the $4 trillion threshold this summer.

Nvidia’s journey to this milestone has been rapid. The company first hit a $1 trillion valuation in May 2023, and its stock has surged nearly 74% since April 2025, recovering from a 37% drop earlier in the year triggered by trade tensions and competitive pressures.

Innovation and Expansion

Nvidia’s growth is fueled by its continuous innovation. At its annual developers conference in March, the company unveiled the Blackwell Ultra chip, designed to support advanced AI models with enhanced reasoning capabilities. Nvidia is also expanding into autonomous robots and vehicles, broadening its influence beyond traditional computing.

CEO Jensen Huang, now the tenth-richest person globally with a net worth of $140 billion according to the Bloomberg Billionaires Index, has become a prominent figure in both tech and political spheres. Huang accompanied President Trump on a May trip to Saudi Arabia and is a key partner in Project Stargate, a $500 billion AI infrastructure initiative aimed at bolstering U.S. technological leadership.

Challenges and Resilience

Nvidia’s path hasn’t been without obstacles. In January, Chinese startup DeepSeek’s low-cost AI model raised concerns about the necessity of expensive chips, causing Nvidia’s stock to plummet. Additionally, U.S. export restrictions on Nvidia’s H20 AI chips to China cost the company $2.5 billion in potential revenue for the April quarter. Despite these setbacks, Nvidia’s stock has rebounded strongly, driven by robust demand and investor confidence.

Huang remains optimistic about the company’s future, emphasizing AI’s transformative potential across industries. “AI is going to transform every industry, from software to healthcare, financial services, retail, transportation, and manufacturing,” he said during a May earnings call. “We’re at the beginning of that.”

Looking Ahead

Wall Street analysts are bullish on Nvidia’s trajectory. Loop Capital analysts Ananda Baruah and Alek Valero project the company could reach a $6 trillion market cap by 2028, citing its near-monopoly in critical AI technology. “Nvidia’s fundamentals can continue to amplify from current levels,” they wrote in a June note.

As Nvidia cements its position as a global tech leader, its $4 trillion milestone marks a defining moment in the AI-driven transformation of the industry, with the company poised to shape the future of technology for years to come.