Nvidia Achieves $5 Trillion Market Value as First Public Company

Nvidia has reached a historic milestone by becoming the first public company to attain a market value of $5 trillion. This achievement underscores the company’s leading role in the ongoing artificial intelligence (AI) revolution.

Market Cap Surge Driven by Key Factors

On Wednesday, Nvidia’s shares experienced a significant increase of over 5.6%, reaching $212.19. This rise was fueled by news that President Donald Trump anticipated discussions about Nvidia’s Blackwell chips with Chinese President Xi Jinping.

Investor enthusiasm also followed remarks from Nvidia CEO Jensen Huang. He stated the company projects $500 billion in AI chip sales and is constructing seven supercomputers across the U.S. for various sectors, including security and energy. These systems will utilize thousands of Nvidia’s GPUs to enhance performance.

Strategic Investments and Partnerships

• Nvidia announced a $1 billion investment in Nokia.
• Partnership aims to develop AI-native 5G-Advanced and 6G networks.

This latest milestone arrives just three months after Nvidia became the first company to surpass the $4 trillion market cap. The stock has jumped more than 50% this year, driven by robust demand for its graphics processing units (GPUs). These GPUs are essential for data centers that support large language models and artificial intelligence applications.

A Transformative Year for Tech Stocks

The tech sector, spurred by AI advancements, has seen a remarkable surge in stock prices. Investors are optimistic that AI technologies will revolutionize multiple industries, reminiscent of the internet’s impact on business.

Over the past year, strategic multi-billion-dollar collaborations, often featuring Nvidia, have facilitated the expansion of data centers necessary for supporting AI models. In September, the company also revealed plans to invest up to $100 billion in OpenAI, a notable player within the AI landscape. Both companies aim to deploy 10 gigawatts (GW) of Nvidia systems to enhance OpenAI’s infrastructure.

Nvidia’s Market Position

With a market cap of $5 trillion, Nvidia surpasses the combined stock markets of all countries except the United States, China, and Japan. This remarkable valuation highlights Nvidia’s pivotal role in the future of technology and AI.