In a landmark moment for the tech industry, Nvidia has become the world’s first $5 trillion company. The Silicon Valley chipmaker’s market cap climbed to $5.05 trillion on Wednesday, driven by an unprecedented boom in artificial intelligence and a surging US stock market.
The speed of this achievement is staggering. Nvidia was the first to break the $4 trillion barrier just three months ago, and its continued ascent highlights the “ravenous appetite” for its advanced AI chips. These processors are now seen as the essential building blocks for the next generation of technology.
The company’s valuation is now so vast that it exceeds the individual GDPs of major countries like Japan, India, and the United Kingdom. This financial might is backed by a $500 billion order book, as disclosed by CEO Jensen Huang.
Nvidia’s dominance is being further entrenched through key partnerships. The company is working with Uber on robotaxis, investing $1 billion in Nokia for 6G, and helping the US Department of Energy build seven AI supercomputers. A $100 billion partnership with OpenAI will also see Nvidia build massive new datacenters for the AI leader.
This AI craze is widely viewed as the biggest technological shift since the iPhone. But this rapid wealth creation has also sparked fears of a bubble. The Bank of England and the IMF have both warned of inflated stock prices, and critics question the “circular” logic of deals like the OpenAI investment.