Nvidia Corporation has officially become the first company in the world to reach a $5 trillion market value, solidifying its position as the driving force behind the ongoing artificial intelligence (AI) boom.
According to a report by CNBC, Nvidia’s stock rose more than 4% on Wednesday, propelling the company past the historic threshold. The surge reflects a meteoric rise for the chipmaker, which has evolved from a niche graphics processor manufacturer into the backbone of AI computing worldwide.
A Journey from Gaming to AI Dominance
Nvidia’s transformation began decades ago as a producer of graphics processing units (GPUs) for gaming. Today, it stands at the center of the global AI revolution, powering applications from machine learning to autonomous vehicles and cloud data centers.
The company’s stock, which climbed over 50% year-to-date, continues to outpace the broader market. Nvidia first crossed the $1 trillion mark in May 2023, joining an elite group that includes Apple, Microsoft, Alphabet, and Amazon.
By February 2024, Nvidia’s market capitalization had doubled to $2 trillion, fueled by unprecedented demand for its AI processors. Just four months later, in June 2024, the company surpassed $3 trillion, becoming the second most valuable public company globally at the time.
Now, Nvidia’s $5 trillion valuation marks a defining moment in tech history, a testament to its innovation, strategic partnerships, and dominance in AI infrastructure.
CEO Jensen Huang Announces $500 Billion in AI Chip Orders
During the announcement, Nvidia CEO Jensen Huang revealed that the company expects to receive approximately $500 billion in AI chip orders, underscoring the massive global appetite for computing power.
He also disclosed Nvidia’s plans to build seven supercomputers for the U.S. government, reinforcing the company’s leadership in high-performance computing and national AI infrastructure.
Nvidia Invests $1 Billion in Nokia to Develop 6G Networks
In a related development, Nvidia announced a $1 billion strategic investment in Nokia, forming a partnership aimed at developing next-generation 6G network technology.
The collaboration is expected to merge AI computing and telecommunications innovation, setting the stage for faster, smarter global connectivity.
Tech Stocks Surge as AI Momentum Builds
The broader U.S. stock market also hit record highs, driven by investor enthusiasm for AI-driven growth. Apple and Microsoft both climbed past $4 trillion in market value, following Nvidia’s momentum.
However, analysts have warned that the rapid ascent of AI-related stocks could lead to valuation risks. Institutions such as the International Monetary Fund (IMF) and the Bank of England recently cautioned that markets may face turbulence if the current AI excitement cools.
Analysts Urge Caution — But See Long-Term Potential
Cathie Wood, CEO of Ark Invest, acknowledged the potential for a short-term “reality check” in AI valuations but dismissed the idea of an AI bubble.
“If our expectations for AI are correct, we are at the very beginning of a technology revolution,” Wood said during the Saudi Arabia Future Investment Initiative, as quoted by CNBC.
The Road Ahead for Nvidia
Nvidia’s rise to a $5 trillion valuation is more than a financial milestone, it symbolizes a technological era defined by artificial intelligence. With its leadership in AI chips, supercomputing, and emerging technologies like 6G, Nvidia continues to redefine what’s possible in global innovation.
As the world’s most valuable company, Nvidia’s influence stretches across industries, shaping everything from data centers to digital transformation and the future of AI-driven computing
