Nvidia Corporation’s market capitalisation soared past $4 trillion on Wednesday following a more than 2 per cent rise in its stock price.

This development has cemented its status as the world’s most valuable company.

The California-based semiconductor giant has now outpaced tech titans Microsoft and Apple—both of which previously crossed the $3 trillion mark—as investor confidence in Nvidia’s dominance in the generative artificial intelligence sector continues to grow.

Fueled by relentless demand for its industry-leading graphics processing units, which power large language models and other AI applications, Nvidia’s stock has skyrocketed more than fifteenfold over the past five years.

The company, founded in 1993, reached a $2 trillion valuation in February 2024 and crossed $3 trillion just four months later in June.

Shares have gained 15 per cent over the past month and are up 22 per cent year-to-date, reflecting strong investor sentiment despite mounting headwinds.

These include U.S. export restrictions on advanced chips to China and broader geopolitical risks affecting the global semiconductor supply chain.

Nvidia’s GPUs have been central to the AI revolution since the launch of ChatGPT in 2022, making the firm a critical supplier to major tech players like Microsoft.

As the race for AI infrastructure accelerates, Nvidia’s unmatched position in the hardware ecosystem continues to drive its record-breaking valuation.