Nvidia has made history by becoming the first company to achieve a market value of $4 trillion, surpassing the GDP of major economies like the United Kingdom and France. This milestone reflects Wall Street’s strong belief in the transformative potential of artificial intelligence (AI) on the global economy. The company’s stock soared to $164.42 shortly after the market opened, before settling slightly lower.

Jensen Huang, an electrical engineer and the driving force behind Nvidia, has positioned the company as a leader in AI technology. According to Steve Sosnick from Interactive Brokers, Nvidia is uniquely poised to capitalize on the burgeoning AI industry, which is expected to revolutionize sectors through robotics and automation, enhancing productivity while challenging existing industries.

Nvidia’s remarkable growth has also contributed to a broader recovery in the stock market, despite ongoing challenges such as US export controls to China and tariff uncertainties. The company’s recent agreement to develop AI infrastructure in Saudi Arabia during a state visit by President Donald Trump highlights potential benefits from current trade policies.

Despite facing setbacks earlier in 2025 due to concerns over the Chinese DeepSeek venture, which temporarily reduced its market valuation by $600 billion, Nvidia has rebounded strongly. The company’s first-quarter earnings reached nearly $19 billion, even after a $4.5 billion impact from US export restrictions aimed at curbing advanced technology sales to China.

The tech industry remains bullish on AI’s future, with giants like Microsoft, Google, Amazon, and Meta competing fiercely in this space. A UBS survey indicates that Nvidia continues to outpace its competitors. Angelo Zino from CFRA Research notes that Nvidia’s recent surge is driven by a deeper understanding of DeepSeek’s role in advancing complex reasoning models rather than posing a threat.

Looking ahead to 2026, demand for sophisticated AI models is expected to grow, with Nvidia at the forefront of developing “AI agents” capable of advanced reasoning and inference. This positions Nvidia as a key player in shaping the future of AI technology.