American computer chip maker Nvidia achieved a historic milestone on Wednesday, becoming the first publicly traded company to reach a market value of $4 trillion. 

The milestone shows just how much artificial intelligence is changing the technology world. Many experts believe AI represents the biggest shift in technology since Apple co-founder Steve Jobs introduced the first iPhone 18 years ago. Nvidia’s success demonstrates this changing landscape. The company is now worth $900 billion more than Apple, which previously held the record for reaching $1 trillion, $2 trillion, and eventually $3 trillion in market value through the iPhone’s success.

Whilst Nvidia has soared, Apple has faced challenges in bringing AI features to its products. The company has struggled to deliver on promises to make the iPhone and other devices smarter with artificial intelligence. This includes a year-old pledge to improve Siri, Apple’s virtual assistant, which has often performed poorly. Apple acknowledged last month that achieving its AI goals will take until at least next year. This delay has led some industry experts to question whether the company might need to purchase an AI startup to stay competitive.

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Meanwhile, Jony Ive, Apple’s former design chief, has partnered with OpenAI to develop a wearable AI device that could potentially compete with the iPhone.

Nvidia has been working hard to keep up with the enormous demand for its specialised chips. These processors power the energy-intensive data centres that run artificial intelligence systems. Major technology companies are investing heavily in AI. Microsoft, Amazon, Google’s parent company Alphabet, and Facebook’s parent Meta Platforms have collectively budgeted approximately $325 billion for AI investments this year. A significant portion of this money is expected to benefit Nvidia.

The high demand for Nvidia’s chips has driven the company’s stock price up dramatically. Since early 2023, the share price has increased ten-fold, pushing the company’s market value from about $400 billion to $4 trillion. After reaching $4 trillion for the first time early Wednesday, Nvidia’s market value dropped slightly below that level during afternoon trading, with shares hovering around $163.

Nvidia’s rapid success has made company founder and chief executive Jensen Huang famous as “the godfather” of AI. His speeches about artificial intelligence’s future attract enthusiastic audiences. Huang’s personal wealth has grown alongside the company’s success and is now estimated at $142 billion.

In early April, it appeared Nvidia might face difficulties when President Donald Trump announced sweeping tariffs. This news triggered a widespread stock market selloff that particularly affected technology companies. At its lowest point, Nvidia’s stock price fell below $87. However, the company recovered quickly. In late May, Nvidia reported excellent quarterly results, including an $18.8 billion profit. This success came despite a $4.5 billion impact from US government restrictions on selling certain chips to China.

Nvidia, based in Santa Clara, California, is scheduled to release its next quarterly report on 27th August. Investors will be watching closely to see if the company can maintain its remarkable growth in the competitive AI market.

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