The tech giant’s shares rose by 2.4% to $164, on Wednesday. The trend is going up further as global demand for artificial intelligence (AI) technologies is raising especially for the powerful chips that power AI systems.

It is pertinent to note that Nvidia had first crossed the $1 trillion mark in June 2023. Since then it has seen an astonishing rise in shares.

Wedbush Securities analyst Ives stated that Nvidia stands at the very core of the AI revolution, with no real competition matching its current dominance.

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Nvidia s stock took a dip earlier this year in April amid concerns around former U.S. President Donald Trump’s tariff-driven trade policies; it has since bounced back sharply. Despite continued geopolitical uncertainty, Nvidia’s hike in shares is building the confidence in the market.

Past figures of Nvidia shows that the tech giant’s shares were trading at less than 1% of today’s price. Initially driven by fierce competition with AMD in the gaming GPU space, the company has more recently shifted to lead the charge in generative AI, powering systems like ChatGPT.

Additionally, in its latest quarterly earnings, Nvidia posted a massive $44.1 billion in revenue, a 69% year-over-year increase and reported a profit of 81 cents per share.

Nvidia CEO Jensen Huang has stated that his firm beat rivals Apple and Microsoft to become the first to cross the $4tn market capitalisation threshold - the share price multiplied by the number of outstanding shares, giving a valuation of the company.