Nvidia becomes world's first $5 trillion company amid soaring AI boom and global tech frenzy
Nvidia becomes the first $5 trillion company, driven by massive AI chip demand and global partnerships. CEO Jensen Huang reveals $500 billion in orders and new investments in OpenAI, Uber and Nokia.
Silicon Valley giant Nvidia has become the first company in the world to reach a $5 trillion market valuation, achieving the milestone just three months after breaching the $4 trillion mark. The record-setting valuation highlights the massive global transformation being driven by the Artificial Intelligence (AI) revolution, considered by many as the most significant shift in technology since Apple co-founder Steve Jobs introduced the first iPhone 18 years ago. Nvidia's meteoric rise shows how central its chips have become to the ongoing AI boom, with investors and industries worldwide racing to secure computing power for AI applications, data centres and supercomputers.
A historic milestone in Tech's evolution
Much like Apple's journey through the iPhone era, Nvidia's growth has been powered by a single defining technology -- its high-performance AI chips that power models such as ChatGPT and other generative AI systems. Apple earlier became the first company to touch the $1 trillion, $2 trillion and $3 trillion valuations, but Nvidia's rapid climb to $5 trillion has stunned global markets. However, the euphoria has sparked caution among financial institutions. Officials from the Bank of England recently warned that inflated valuations of tech firms riding the AI wave could lead to a potential "AI bubble." The International Monetary Fund (IMF) chief has also voiced similar concerns about the sustainability of the current market rally.
The numbers behind Nvidia's surge
On Wednesday, Nvidia's shares surged to $207.86 in early trading, with 24.3 billion shares outstanding, bringing its market capitalisation to $5.05 trillion. Notably, the company's value now exceeds the GDP of India, Japan and the United Kingdom, according to IMF estimates. Nvidia CEO Jensen Huang recently revealed that the company has received $500 billion worth of chip orders, reflecting the skyrocketing global demand for AI computing hardware.
Strategic deals and massive investments
Nvidia's ambitions go far beyond chipmaking. The company has announced several major collaborations, including a partnership with Uber to develop robotaxis, and a $1 billion investment in Nokia to jointly work on 6G technology. Additionally, Nvidia is partnering with the US Department of Energy to construct seven new AI supercomputers, further consolidating its dominance in the AI ecosystem. In another major development, Nvidia announced a $100 billion investment in OpenAI, aimed at building 10 gigawatts of Nvidia-powered AI data centres to expand computing capabilities for ChatGPT's parent company.
Focus on global expansion and China strategy
Nvidia's global footprint continues to expand, including discussions around a new chip tailored for the Chinese market. CEO Jensen Huang confirmed that the company is in talks with the Trump administration about the potential chip's export approval. Former US President Donald Trump also stated aboard Air Force One that he plans to speak with Chinese President Xi Jinping about Nvidia’s technology on Thursday.
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