Nvidia's market value approaches 4 trillion, a new peak and challenge in finance under the AI wave

New York (AFP) reported that in Wednesday's stock market trading, Nvidia entered the hall of $4 trillion in an unprecedented manner, a milestone event marking Wall Street's firm belief that artificial intelligence (AI) will reshape the global economic structure. Shortly after the stock market opened, Nvidia's share price rapidly rose to $164.42, pushing its total market value above the $4 trillion mark. Although the share price slightly declined later, the closing price failed to firmly stand above this historic threshold.

The success of NVIDIA is undoubtedly a direct reflection of the AI craze in the financial sector. Steve Sosnick, an analyst at Interactive Brokers, pointed out: "The market generally believes that artificial intelligence represents the future direction of development, and Nvidia, as the leader in this field, is undoubtedly the company most likely to reap rich rewards from this' gold rush '." This view has been widely recognized. Under the leadership of electrical engineer Jensen Huang, Nvidia's market value has surpassed the gross domestic product (GDP) of France, the United Kingdom, and even India. This not only demonstrates investors' confidence in AI technology but also heralds the approaching of a new era of robots and automation.

The soaring share price of NVIDIA has not only brought substantial returns to itself but also driven the recovery of the broader stock market. Against the backdrop of Nvidia outperforming major indices, the rise in its share price has become a bright spot in the stock market. Part of the reason can be attributed to US President Donald Trump's cancellation of a series of strict tariff measures, which had a considerable impact on global markets in early April. Despite Trump's recent announcement of new tariff actions, the US stock market remained at a high level, and the Nasdaq Index, dominated by technology stocks, even set a new record on Wednesday.

However, Nvidia's development path has not been smooth sailing. Although its leading position in the field of AI is unshakable, it still faces challenges from multiple aspects. Among them, the export control imposed by the United States on China and the broader uncertainty of tariffs are both factors that cannot be ignored. Despite this, an artificial intelligence infrastructure construction agreement reached by Nvidia with Saudi Arabia during Trump's state visit in May seems to suggest that the US President's trade policies may bring certain benefits to the company. Angelo Zino, a technology analyst at CFRA Research, pointed out: "We have seen the government use NVIDIA chips as bargaining chips in some cases."

However, NVIDIA's dominant position in the AI field is not unshakable. In early 2025, DeepSeek, headquartered in China, shook the world of generative AI with its low-cost and high-performance models, posing a challenge to giants like NVIDIA. Despite the fact that Nvidia's stock price suffered a heavy blow in a short period of time, with a market value loss of approximately 60 billion US dollars in a single trading day, Huang Rengxun welcomed the existence of DeepSeek and opposed the US export restrictions.

From a financial perspective, Nvidia reported nearly $1.9 billion in revenue in the most recent quarter, despite a $400 million loss caused by US export controls restricting the sale of cutting-edge technologies to China. However, the momentum of AI remains strong, and many tech giants such as Microsoft, Google, Amazon and Meta are all actively vying for dominance in this multi-billion-dollar artificial intelligence race. A recent survey of technology executives by UBS shows that NVIDIA's leading position in the AI field has further expanded.

Nvidia's share price closed at $162.88 on Wednesday, up 1.8%, with a market capitalization slightly below $4 trillion. Although this closing price did not firmly stand above the $4 trillion mark, the achievements NVIDIA has made are already sufficient to draw widespread attention from the market. From a financial perspective, Nvidia's success not only reflects the market's confidence in AI technology but also indicates new trends in future economic development. However, in the face of the rapidly changing market environment and technological challenges, whether NVIDIA can continue to maintain its leading position still needs to be tested by time.