San Francisco: Nvidia has become the first company in history to reach a market value of $5 trillion, marking another milestone in its remarkable transformation from a graphics chip maker into a global leader in artificial intelligence hardware.
Shares of the California-based company surged by more than 5 percent, trading above $212, as investors continued to bet on booming demand for AI chips. Nvidia’s meteoric rise comes just three months after it crossed the $4 trillion mark, and barely a year after first hitting $1 trillion in June 2023.
The company’s chips are at the heart of the AI revolution, powering data centres, autonomous systems, and platforms run by industry giants such as OpenAI and Oracle. Nvidia’s rapid expansion has made it the world’s most valuable company, surpassing both Microsoft and Apple, which recently reached $4 trillion valuation.
Nvidia’s market value now exceeds the GDP of every nation except the United States and China, according to World Bank data, and is greater than entire sectors within the S&P 500 index.
China remains the company’s largest market for AI chips despite ongoing trade tensions. Although Nvidia was previously barred from selling its most advanced processors to China, the restriction was reversed in July under an agreement requiring the firm to pay 15 percent of its Chinese revenues to the US government.
US President Donald Trump is expected to meet Chinese President Xi Jinping this week, with Nvidia’s Blackwell processors reportedly among the topics of discussion.
Nvidia’s stock has gained more than 50 percent so far this year. Chief Executive Jensen Huang, who has become a high-profile figure in the tech world, said this week that the company expects around $500 billion in AI chip orders through next year.
