Nvidia beats Apple and Microsoft to become the world’s first $4 trillion public company

Nvidia achieved a $4 trillion market capitalization, becoming the first public company to reach this milestone, fueled by a 2.5% intraday stock surge and its foundational role in the artificial intelligence revolution. The chipmaker reported a 69% year-over-year revenue increase to $44.1 billion for the April quarter, underscoring its critical position in AI infrastructure despite previous headwinds from export restrictions and competitive concerns. Analysts project Nvidia's continued market dominance, with some forecasting a $6 trillion valuation by 2028 given its near-monopoly in essential AI technology.

Analysis

Nvidia has become the first public company to achieve a $4 trillion market capitalization, driven by its central role in the artificial intelligence sector and robust financial performance. The company's quarterly revenue surged to $44.1 billion, a 69% year-over-year increase, underscoring the immense demand for its processing units from hyperscalers like Microsoft, Amazon, and Google. This demand is set against a backdrop of projected global AI infrastructure spending expected to surpass $200 billion by 2028. Despite this strong momentum, which includes a 74% stock rally since early April, the company faces tangible risks. It previously experienced a 37% stock decline due to concerns over low-cost AI models from competitors like DeepSeek and geopolitical headwinds, including U.S. export restrictions to China that resulted in a stated $2.5 billion revenue loss in the last quarter. Analyst sentiment remains overwhelmingly positive, with firms like Loop Capital forecasting a potential $6 trillion valuation by 2028, citing Nvidia's near-monopolistic position and a strong product pipeline featuring its next-generation Blackwell Ultra chip.

Key Decisions for Investors

• Given Nvidia's fundamental strength, including 69% YoY revenue growth and its critical position in the AI supply chain, a long-term bullish position may be warranted, though investors should be mindful of the stock's historic valuation.
• Closely monitor geopolitical risks, specifically US-China export controls which have already impacted revenue, and the emergence of competitive low-cost AI models, as these factors were primary drivers of significant stock volatility earlier in the year.
• Evaluate relative performance within mega-cap technology, noting the capital rotation dynamic where Nvidia is ascending while peers like Apple have faced headwinds from tariff policies.
• Future growth catalysts to watch include the market adoption of the new Blackwell Ultra chip and developments related to the $500 billion Project Stargate, which could validate long-term analyst valuation targets.