Nvidia has become the world’s first $5tn company, just three months after it was the first to break through the $4tn barrier. The Silicon Valley chipmaker’s market value now exceeds the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund.
Shortly after US markets opened on Wednesday, Nvidia’s shares touched $207.86, putting its market capitalisation at $5.05tn. The surge is driven by ravenous demand for Nvidia’s chips, considered the most advanced for powering artificial intelligence products.
CEO Jensen Huang disclosed $500bn in chip orders on Tuesday, alongside a partnership with Uber on robotaxis and a $1bn investment in Nokia for 6G technology. Nvidia is also collaborating with the US Department of Energy to build seven new AI supercomputers, and plans to invest $100bn in OpenAI to add at least 10 gigawatts of AI datacenters.
President Donald Trump has backed Nvidia, calling Huang an “incredible guy” and suggesting he may allow a less-powerful version of the Blackwell chip to be sold to China. Trump disclosed owning up to $1.3m worth of Nvidia shares. He said he would discuss the chips with Chinese President Xi Jinping.
However, concerns of an AI bubble persist. Bank of England officials and the IMF head have warned that tech stock prices could burst. Analysts note that many AI investments are circular – Nvidia’s $100bn investment in OpenAI hinges on OpenAI buying millions of Nvidia’s chips – and that most AI pilot programs in businesses fail.
