Nvidia’s market value surpassed $4 trillion for the first time at the close of trading on Thursday, underscoring its pivotal role in powering the artificial intelligence revolution that has gripped Wall Street and reshaped the global tech sector.

Shares of the US chipmaker rose 0.75% to finish at $164.10, bringing its total market capitalisation to $4.004 trillion. This firmly places Nvidia ahead of technology giants Apple and Microsoft, as the company continues to benefit from unprecedented demand for its high-end processors, which power the data centres driving AI development.

The milestone followed a brief surge past $4 trillion during Wednesday’s trading session, though Nvidia closed that day below the threshold at around $3.97 trillion. Its market value now exceeds the combined worth of all publicly listed companies in the United Kingdom.

Nvidia’s advanced graphics processing units (GPUs) are at the heart of the escalating race among major US tech firms—including Microsoft, Amazon, Alphabet, and Meta Platforms—to expand AI computing capacity and secure leadership in the emerging technology. These companies are investing heavily in data centres capable of training and running large-scale AI models.

However, Nvidia faces geopolitical headwinds, particularly in relation to US-China trade tensions. Washington’s export controls limit the sale of Nvidia’s most powerful chips to China, a key growth market. Additionally, the company is exposed to competitive risks as AI adoption broadens and buyers explore lower-cost alternatives to Nvidia’s premium processors.

“Trade tensions and tariffs are a risk, as is competition. Greater AI adoption could shift part of the demand toward cheaper alternatives,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a client note.

Nvidia first crossed the $1 trillion market capitalisation threshold in June 2023 and has since tripled its value in about a year—a feat that took Apple and Microsoft far longer to achieve. This rapid growth reflects Nvidia’s central role in the current phase of technology investment focused on AI infrastructure.

Microsoft remains the second most valuable US company, with a market capitalisation of $3.73 trillion. Its shares fell 0.4% on Thursday. Apple, meanwhile, has seen its stock drop 15% since the start of 2025, leaving its market value at $3.17 trillion. Investor concerns persist over Apple’s slower rollout of AI features across its products and services.