Nvidia Hits Historic Milestone of Becoming a $5 Trillion Corporation

Nvidia has become the world's first $5tn firm, just a quarter after the Silicon Valley chipmaker initially surpassed the $4tn market value barrier.

By contrast, Nvidia’s value is greater than the gross domestic product of Japan, India, and the UK, according to IMF data.

Soon after American exchanges opened this Wednesday, Nvidia’s shares touched $207.86 with 24.3bn shares outstanding, placing its market cap at $5.05 trillion.

Strong demand for Nvidia’s processors, seen as the top-tier in powering AI products and software, is the main reason that the share value has increased so rapidly since early 2023.

The wider US stock market has reached new peaks recently, buoyed up by expansive investment in artificial intelligence.

Major Announcements and Partnerships

Earlier this week, Nvidia’s CEO, Jensen Huang, revealed $500 billion in chip orders.

The company also announced a collaboration with the ride-hailing service on robotaxis and a $1bn funding in Nokia, with the parties aiming to work together on 6G technology.

In addition, Nvidia is joining forces with the American energy agency to construct multiple advanced computing systems.

Recently, Nvidia announced that it will commit $100 billion in OpenAI as within a joint effort that will add at least 10GW of Nvidia AI datacenters to ramp up the computing power for the developer of the AI assistant ChatGPT.

In August, Huang said Nvidia was discussing a prospective processor designed for China with the Trump administration.

Donald Trump said on Air Force One that he would speak with the China's leader, Xi Jinping, about Nvidia’s technology on Thursday.

Tech Surge and Market Impact

Reaching this milestone puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that is considered the biggest tectonic shift in the tech sector after the tech pioneer Steve Jobs unveiled the original smartphone 18 years ago.

Apple capitalized on the iPhone’s success to emerge as the first publicly traded company to be worth $1tn, $2tn and eventually, $3 trillion.

Potential Concerns

However, worries exist of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices driven by the AI boom could burst.

The head of the IMF has raised a similar alarm.