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.

Silicon Valley chipmaker Nvidia on Wednesday became the first publicly traded company to surpass a $4 trillion market valuation, putting the latest exclamation point on the investor frenzy surrounding an artificial intelligence boom powered by its industry-leading processors.

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 has rebounded about 74% from its lows in April, when global markets were jolted from U.S. President Donald Trump's tariff volley.

The AI Titan’s Ascent Nvidia (NASDAQ:NVDA) has evolved from a niche graphics chip maker to a global technology titan, driven by its dominance in artificial intelligence (AI) and accelerated computing.

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

Nvidia trades at $159.85 nearing a $4 trillion market cap. AI, robotics, and global demand continue to fuel its explosive growth.

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.