Computer chip maker Nvidia reaches highest market value ever of $4 trillion

Nvidia made history on Wednesday when it became the first company ever to reach a $4 trillion market value during trading hours, according to CNBC's financial reporting. The computer chip maker's stock went up during the day, pushing its total company worth past this amazing milestone for the first time. However, the stock price dropped a bit by the end of the day, finishing only 1.8% higher and giving Nvidia a final market value of $3.97 trillion. This achievement makes Nvidia the world's most valuable company, beating both Microsoft and Apple, which had reached $3 trillion before Nvidia did.

The California-based company, which started in 1993, first hit the $2 trillion mark in February 2024 and then passed $3 trillion in June. Nvidia has made huge profits from the growing need for AI computer parts and chips since ChatGPT launched in late 2022. The company has become the clear leader in making special computer chips that power large language models. Over the last five years, this high demand has made Nvidia's stock price go up more than fifteen times. CNBC notes that Nvidia's shares have risen more than 15% in the past month and 22% since the beginning of this year.

The remarkable achievement comes during a time when Brazil's financial markets faced serious problems, as Bloomberg's market analysis shows. Brazil's currency, the real, had its biggest drop in three months on Wednesday after President Donald Trump said he would put 50% taxes on goods from Brazil, which is much higher than what he had announced before. Despite these global tensions, Nvidia's co-founder Jensen Huang is planning to meet with top Chinese officials in Beijing next week, showing that the company wants to keep working in the huge Chinese market even though Washington is trying to separate America from China.

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This meeting is important because it shows Nvidia's commitment to staying in China despite political pressure. The stock market rally saw small gains on Wednesday, with the Nasdaq reaching a new all-time high. Bloomberg's financial experts point out that Nvidia became the first company in history to reach a $4 trillion market value, marking a major moment in business history. Other big tech companies like Broadcom, Google's parent company Alphabet, Meta Platforms, and Amazon, all worth more than $1 trillion, also helped the market do well. The achievement shows how important Nvidia has become in the technology world and the artificial intelligence revolution.

Taiwan Semiconductor Manufacturing, which makes chips for Nvidia, reported very good second-quarter sales results before the market opened on Thursday, according to Investor's Business Daily's market coverage. The company's sales jumped nearly 39% compared to the same time last year when measured in Taiwan dollars, or up 46% in US dollars, beating what experts expected. These results are very important for Nvidia and other major customers like Broadcom and Apple, as well as companies that make chip-making equipment. Delta Air Lines also reported better-than-expected earnings and gave positive guidance for the summer quarter, making its stock jump more than 10%. President Trump also announced that his 50% tax on copper will start on August 1, and US copper prices went up slightly, adding to big weekly gains. The stock market rally had small to solid gains on Wednesday, with the Nasdaq reaching a new high.

The Dow Jones Industrial Average went up 0.5%, the S&P 500 climbed 0.6%, and the Nasdaq gained 0.9%. As Investor's Business Daily reports, the gains mostly came from Nvidia, Meta, Google, Broadcom, and Amazon performing well. The small-cap Russell 2000 jumped 1.1%, reaching its best levels since late February, showing that the market strength spread beyond just the biggest companies.