The Dow Jones index dropped Thursday ahead of jobless claims and retail sales. Nvidia chipmaker TSMC jumped on earnings.

Nvidia ( NVDA 4.08%) became the first company to reach $4 trillion in market cap on Wednesday -- an incredible feat considering the company was worth a fraction of tech giants Apple and Microsoft just a few years ago.

Nvidia's stock market value ended the trading session above $4 trillion, solidifying the chipmaker's position as Wall Street's central player in a race to dominate AI technology.

Nvidia currently has the highest market cap of $3.98 trillion. Founded by Jensen Huang, Chris Malachowsky, and Curtis Priem in 1993, the company first focused on producing multimedia processors and graphics chips. Its graphic processing units (GPUs) improved the look and feel of gaming and transformed video editing.

Currently, Nvidia accounts for nearly 8 percent of the S&P 500. That’s the highest weighting for a single stock in 45 years, according to Todd Sohn, senior ETF strategist at Strategas Securities. For context, industrials account for 8.7 percent of the index, while healthcare stands at 9.1 percent.

Nvidia briefly reached a market capitalization of $4 trillion on Wednesday, making it the first company in the world to reach the milestone and solidifying its position as one of Wall Street's most-favored stocks.

Nvidia plans to increase the supply of its H20 chips to China, aiming to strengthen its position in the lucrative Chinese technology market. This move follows the lifting of an export ban and comes as Nvidia navigates US-China trade tensions.

The jump on Wednesday marks a milestone for the stocks, which embarked on a stunning rally in the years since ChatPGT debuted in 2022.

AI chip giant Nvidia is the first company in history to reach a market valuation of $4 trillion, but it likely won't be the last.

Dow Jones futures fell slightly after hours, along with S&P 500 futures and Nasdaq futures. United AirlinesUAL reported mixed results late Wednesday. NvidiaNVDA and AMD chipmaker Taiwan SemiconductorTSM headline earnings early Thursday with NetflixNFLX due after the close.