Many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced. Get the story here.

On Wednesday, Nvidia became the first company in history to reach $4 trillion market valuation as shares rose more than 2 percent, reports CNBC. The GPU maker's stock has climbed 22 percent since the start of 2025, continuing a trend driven by demand for AI hardware following ChatGPT's late 2022 launch.

Yet several prominent hedge fund managers sold Nvidia during the first quarter and added shares of Palantir Technologies ( PLTR 3.54%), a stock that has returned 2,000% since January 2023.

Nvidia on Wednesday became the world’s most valuable company, with its market capitalization briefly touching $4 trillion intraday.

The sustaining growth of the company’s AI revenue and cloud platform Azure are not fully priced into the stock, Oppenheimer analysts said.

The pressure on Nvidia coincides with a broader market pullback triggered by President Donald Trump’s latest tariff threats. In social media posts on July 7, the president shared letters sent to the leaders of 14 countries about upcoming tariff hikes.

Just about every big tech company in the world is in a race to build more computing capacity than anyone else in order to meet the demands for large language model training and AI