Chipmaker Nvidia becomes first $5 trillion company as AI boom fuels record surge
Nvidia has become the world’s first company to hit a $5 trillion market valuation, achieving the milestone barely three months after it crossed the $4 trillion mark.
The latest surge underscores the seismic transformation being driven by the artificial intelligence (AI) revolution, widely regarded as the biggest shift in technology since Apple co-founder Steve Jobs launched the iPhone 18 years ago, AP reported.
Apple’s own journey through the trillion-dollar thresholds—$1 trillion, $2 trillion, and eventually $3 trillion—was powered by the iPhone’s success.
However, concerns are mounting about a potential AI-driven market bubble. Earlier this month, officials at the Bank of England warned that soaring tech stock valuations could face a sharp correction. The International Monetary Fund chief echoed similar concerns about overheating in the AI sector.
Nvidia’s meteoric rise is largely fuelled by explosive demand for its AI chips, propelling its stock price sharply upward since early 2023.
On Wednesday, Nvidia’s shares touched $207.86 in early trading, with 24.3 billion shares outstanding, giving it a market capitalisation of $5.05 trillion.
To put that in perspective, Nvidia’s market value now surpasses the gross domestic product (GDP) of major economies such as India, Japan, and the United Kingdom, according to IMF data.
On Tuesday, CEO Jensen Huang revealed $500 billion worth of chip orders, alongside a new partnership with Uber to develop robotaxis, and a $1 billion investment in Nokia aimed at collaborating on 6G technology.
Nvidia is also partnering with the U.S. Department of Energy to build seven new AI supercomputers, expanding America’s high-performance computing capabilities.
Last month, Huang announced a $100 billion investment in OpenAI under a partnership that will add 10 gigawatts of Nvidia-powered AI data centres, significantly boosting computing capacity for the maker of ChatGPT.
Huang also said in August that Nvidia was in discussions with the Trump administration about developing a new chip for China. President Donald Trump later told reporters aboard Air Force One that he would discuss Nvidia’s semiconductor developments with Chinese President Xi Jinping on Thursday.
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