Nvidia has reached a $4trn market capitalisation, marking a significant milestone in the tech industry amid a revival of Wall Street technology stocks.

The Silicon Valley chipmaker’s shares increased by up to 2.8% on Wednesday, reaching a high of $164.42, reported The Financial Times. This surge allowed Nvidia to achieve the milestone but eventually settled at a market value of $3.97trn, surpassing Apple’s previous record of $3.92trn.

Nvidia’s stock has climbed 40% since early May 2025, influenced by an easing in US-China trade tensions and significant chip agreements in the Middle East. Its dominance in supplying chips for AI services, such as OpenAI’s ChatGPT, has been a critical factor in this surge.

The company’s CEO Jensen Huang has been expressing confidence in the long-term potential of AI and robotics to generate significant revenue. In a recent statement, Huang noted that advancements in AI and increased demand are accelerating growth, as evidenced by a 70% increase in quarterly revenues.

Nvidia’s trajectory began over two years ago when it surpassed a $1trn valuation following the launch of ChatGPT, which heightened interest from major technology firms and AI start-ups. Nvidia reached valuations of $2trn in February 2024 and $3trn in June 2024. However, the firm encountered challenges at the start of this year due to uncertainties about sustained chip demand and concerns over US tariffs and curbs on exports to China.

The chipmaker faced further issues when Chinese company DeepSeek launched a model claiming reduced computing resource requirements compared to competitors like OpenAI.

Additionally, in April 2025, Nvidia was notified about export license requirements for its H20 AI chips for the Chinese market, resulting in a $4.5bn charge related to excess inventory and purchase commitments.

Nevertheless, Nvidia projects its revenue will approach $200bn in 2025, with net income estimated at $105bn according to S&P Capital IQ analysts.

In financial results for fiscal 2026’s first quarter announced in May 2025, Nvidia reported $44.1bn in revenue, marking a 12% quarterly increase and a 69% annual rise. Despite these figures, new export controls are expected to continue impacting revenue into the second quarter.

Meanwhile, Perplexity AI, an Nvidia-backed startup, has unveiled Comet, a web browser featuring AI-enhanced search capabilities. This product aims to challenge Google’s Chrome and signifies Perplexity AI’s entry into the competitive browser market with its AI-driven technology.