Nvidia made history on July 9, 2025, becoming the first company worldwide to achieve a market capitalization of over 4 trillion USD. This historic milestone reflects the company’s strong market position and explosive growth, particularly driven by the increasing demand for AI technologies and the success of the new Blackwell chip.
Background of Growth
The rapid increase in market capitalization, which has quadrupled from under 1 trillion to over 4 trillion USD in less than three years, is closely linked to the boom in artificial intelligence, which has gained significance since becoming widely recognized by applications like ChatGPT.
Revenue Growth
A central factor in the success is the impressive revenue growth. Nvidia increased its quarterly revenue from around 7.2 billion USD in the first quarter of 2023 to 44.1 billion USD in the first quarter of 2025 – a more than sixfold increase within just two years.
Significance for Investors
For private investors, this milestone signals sustained strength and innovation leadership of the company. The stock is particularly popular on Wall Street as it plays a central role in the AI revolution.
Industry Competition and Risks
However, there are risks posed by competition from tech giants like Amazon, Microsoft, or Meta, who could develop their own chips. Quantum computing is also mentioned as a potential disruptive factor, though according to Nvidia, it is still at least a decade away.
Outlook
Analysts continue to forecast strong growth in the technology sector, especially in AI-driven innovations. Microsoft could soon also breach the 4 trillion USD mark; in the long term, a target value of up to 5 trillion USD for Nvidia is even being discussed.
Overall, Nvidia’s surpassing the four trillion USD mark not only demonstrates the enormous economic success of the company but also the fundamental importance of its products for the globally growing artificial intelligence market. This is a crucial signal for investment decisions for both institutional and private investors.