Nvidia Becomes First $5 Trillion Company
Nvidia has reached a remarkable milestone, becoming the first company to achieve a market valuation of $5 trillion. This achievement positions Nvidia’s worth above the GDP of all nations, except for the United States and China.
Nvidia’s Rapid Growth
Just three months prior, Nvidia was valued at $4 trillion. Over the past two years, its market value surged from $1 trillion to a staggering $5.03 trillion as of this Wednesday, following a stock increase of over 3%.
- Current market value: $5.03 trillion
- Market cap three months ago: $4 trillion
- Market cap two years ago: $1 trillion
- Stock increase this year: over 50%
- Stock increase over five years: over 1,500%
Impact on the Stock Market
Nvidia’s ascent has fueled an investment surge in the artificial intelligence sector, impacting U.S. stock markets significantly. This has raised concerns among economists about the potential for an AI bubble, drawing parallels to the internet boom of the late 1990s.
CEO Jensen Huang’s Vision
On the same day Nvidia’s market value hit $5 trillion, CEO Jensen Huang participated in the company’s annual AI conference in Washington, D.C. He announced several partnerships and a forecast of $500 billion in AI chip orders for the upcoming year.
Market Competitors
Nvidia now holds a market valuation greater than the combined worth of its major competitors, including:
- AMD
- Intel
- Broadcom
- TSMC
- Micron
- ASML
- Lam Research
- Qualcomm
- Arm Holdings
Concerns and International Relations
The surge in public interest surrounding AI has also sparked dialogue on potential limitations regarding AI technology sales to China. President Donald Trump indicated that he would discuss Nvidia’s advanced Blackwell chip with Chinese President Xi Jinping, highlighting the geopolitical implications.
Nvidia’s Blackwell chip is touted for its power but has faced restrictions in sales to China due to concerns over national security. Commerce Secretary Howard Lutnick noted the U.S. would not provide its most advanced technology to China but may allow sales of less sophisticated alternatives.
Nvidia’s historic market valuation underscores its critical role in the AI landscape, igniting discussions over both economic potential and ethical considerations in technology deployment.
