🔗 Share this article

Nvidia now stands as the world's first $5tn company, only a quarter following the Silicon Valley chipmaker first broke through the $4 trillion market value mark.

In comparison, Nvidia’s worth is greater than the GDP of Japan, India, and the UK, according to IMF data.

Shortly after US stock markets began trading this Wednesday, Nvidia’s shares reached over $207 with 24.3bn available shares, placing its market capitalization at $5.05 trillion.

Strong demand for Nvidia’s chips, seen as the top-tier in powering AI products and software, is the primary driver that the company’s stock price has increased so rapidly since early 2023.

The wider US stock market has hit new peaks this week, supported by massive funding in artificial intelligence.

Major Announcements and Strategic Moves

On Tuesday, Nvidia’s Chief Executive, Jensen Huang, revealed $500bn in processor contracts.

Nvidia also unveiled a partnership with the ride-hailing service on robotaxis and a $1 billion funding in Nokia, with the two planning to work together on next-generation networks.

Furthermore, Nvidia is teaming with the US Department of Energy to construct seven new advanced computing systems.

Last month, Nvidia announced that it will commit $100 billion in OpenAI as part of a partnership that will include at least 10GW of AI computing facilities to boost the computing power for the developer of the artificial intelligence chatbot ChatGPT.

This past summer, Huang mentioned Nvidia was discussing a prospective computer chip tailored to the Chinese market with the former U.S. government.

Donald Trump remarked aboard his plane that he would discuss with the China's leader, Xi Jinping, about Nvidia’s chips later this week.

Tech Surge and Economic Significance

Reaching this milestone puts more emphasis on the transformation being unleashed by an artificial intelligence craze that is considered the most significant change in technology after the Apple co-founder Steve Jobs unveiled the original smartphone nearly two decades back.

Apple rode the smartphone’s popularity to become the first publicly traded company to be valued at $1 trillion, $2tn and eventually, $3 trillion.

Potential Concerns

But there are concerns of a possible AI bubble, with officials at the Bank of England recently flagging the growing risk that equity values driven by the artificial intelligence surge could burst.

The head of the IMF has raised a similar alarm.