Chipmaker's record US$5 trillion valuation spotlights AI's power to reshape markets and global tech leadership
Nvidia shattered records on Wednesday, becoming the world’s first company to surpass a US$5tn market capitalization, a milestone that underscores the company’s central role in the global artificial intelligence (AI) boom, according to Reuters.
The chipmaker’s shares closed up 3 percent at US$207.04, bringing its total value to US$5.03tn after briefly touching even higher levels during the session, as reported by Reuters.
The surge in Nvidia’s stock comes amid unprecedented demand for its AI processors, with the company announcing US$500bn in chip orders and plans to build seven new supercomputers for the US Department of Energy, as highlighted by Bloomberg.
The largest of these supercomputers will be constructed in partnership with Oracle and will feature 100,000 of Nvidia’s advanced Blackwell AI chips, designed to support US nuclear research and other scientific initiatives, according to Reuters.
Nvidia’s rapid ascent has been driven by its dominance in the AI hardware market, with its H100 and Blackwell processors powering the data centres behind major AI applications such as ChatGPT.
Since the launch of ChatGPT in 2022, Nvidia’s shares have climbed twelvefold, propelling the S&P 500 to record highs and igniting debate about the sustainability of tech valuations, as noted by Reuters.
The company’s influence extends beyond technology, with CEO Jensen Huang pledging US$500bn in US AI infrastructure investments and taking strategic stakes in firms such as Nokia and Intel, reported by CNBC.
Nvidia’s US$1bn investment in Nokia is part of a broader partnership to develop next-generation 6G cellular technology, with Nokia adapting its software to run on Nvidia’s chips, as per CNBC.
Geopolitical tensions have also shaped Nvidia’s trajectory.
Sales of its high-end AI chips to China, which accounted for 13 percent of revenue in the past financial year, remain a focal point in US-China trade talks.
US President Donald Trump has praised Nvidia’s technology and indicated he may discuss the company’s flagship Blackwell chip with Chinese President Xi Jinping, as reported by Reuters.
The administration’s shifting stance on chip exports—at times restricting and then reopening sales—reflects ongoing debates about balancing national security with global competitiveness.
Despite concerns from some policymakers and analysts about the pace of AI investment and the potential for a market bubble, Nvidia’s financial performance remains robust.
The company reported nearly US$26bn in net income in the most recent quarter and estimates it will benefit from as much as US$4tn in AI infrastructure spending by the end of the decade, according to CNN.
Nvidia’s meteoric rise has left other tech giants in its wake, with Microsoft and Apple each recently reaching the US$4tn mark.
