Nvidia’s valuation has taken a $5 trillion leap, a historic first for any company. The chipmaker’s market cap hit $5.05 trillion on Wednesday as its shares climbed to $207.86. This milestone comes just three months after the company first crossed the $4 trillion mark, illustrating the sheer velocity of the AI boom.
This frenzy is driven by the consensus that Nvidia’s chips are the most advanced and essential tools for powering artificial intelligence. This dominance has allowed Nvidia to far outgrow its competitors, lifting the entire US stock market to record highs this week.
Recent announcements have fanned the flames of this rally. CEO Jensen Huang disclosed a $500 billion order book. The company also revealed a $100 billion partnership with OpenAI to massively scale its computing power, a robotaxi deal with Uber, and a $1 billion investment in Nokia for 6G development.
The company has also received a strong endorsement from President Donald Trump. Trump, who holds a financial stake in Nvidia, called CEO Jensen Huang “incredible” and has signaled a potential easing of trade restrictions that would allow some chip sales to China, a move that has investors excited.
This AI-driven surge is being compared to the iPhone’s impact on Apple, which became the first $1T, $2T, and $3T company. But with this rapid growth come significant concerns. Regulators are warning of a potential AI bubble, pointing to circular investments and widespread reports that most business AI projects are failing to deliver revenue.