• Nvidia becomes the first public company to hit a $4 trillion market capitalization.
• The company's stock rose to $164, driven by strong demand for AI technologies.
• Nvidia's market value tripled since achieving $1 trillion in mid-2023.
• Major tech companies are projected to increase AI investments significantly.
• Nvidia's rise is juxtaposed with ongoing uncertainty from U.S.-China trade tensions.

Nvidia has officially become the first company in history to achieve a market capitalization of $4 trillion, a milestone reached due to a remarkable surge in demand for artificial intelligence technologies. The chipmaker's shares increased by as much as 2.8% to $164.42 on Wednesday, underscoring its dominance in the tech sector, which has fueled a transformative era in robotics and automation. This historic milestone solidifies Nvidia's position as a leader in AI and as one of Wall Street's most-favored stocks, according to Bangkok Post and Reuters.

Nvidia's market value has skyrocketed, more than tripling from its $1 trillion valuation achieved in June 2023, surpassing the growth rates of tech giants Apple and Microsoft, the only other U.S. companies with market capitalizations exceeding $3 trillion. Nvidia's rapid ascent reflects Wall Street's burgeoning confidence in AI, with investor sentiment buoyed by the continuous innovations in its high-performance chips, which are integral to many AI systems, as highlighted by Channel News Asia and Al Jazeera.

Recent data indicates that Nvidia's chips are witnessing unprecedented demand as tech giants like Microsoft, Meta Platforms, Amazon, and Alphabet ramp up their collective investments in AI infrastructure, estimated to grow to $350 billion in the next fiscal years, which comprises over 40% of Nvidia's revenue. This economic momentum highlights Nvidia's pivotal role in the evolving landscape of technology, according to SFGate and Channel News Asia.

Despite its successes, Nvidia faces challenges ahead, particularly from trade tensions with China, which could impact its ability to sell certain high-end chips abroad. Analysts remain cautious yet optimistic, noting that while Nvidia’s valuation demonstrates significant confidence in the AI sector, external factors like potential tariffs and market volatility should be monitored closely, as reported by Reuters and Reuters.