New York: Nvidia has become the world’s first $5 trillion company, marking a new milestone in the global technology industry. The Silicon Valley chipmaker achieved this valuation only three months after crossing the $4 trillion mark, highlighting the explosive growth of artificial intelligence and the demand for advanced computing chips.
With its shares trading at $207.86 and 24.3 billion shares outstanding, Nvidia’s market capitalization has now reached $5.05 trillion. This valuation exceeds the gross domestic product (GDP) of India, Japan, and the United Kingdom, as estimated by the International Monetary Fund.
The company’s rapid rise has been driven by a surge in global demand for AI chips used in data centers, self-driving technology, and generative AI applications. Nvidia CEO Jensen Huang recently revealed $500 billion worth of chip orders and announced major partnerships, including a robotaxi collaboration with Uber and a $1 billion investment in Nokia to develop 6G technology.
The company is also working with the U.S. Department of Energy to build seven new AI supercomputers and plans to invest $100 billion in OpenAI to enhance computing power for ChatGPT.
While Nvidia’s success has reinforced its dominance in the AI sector, financial regulators have expressed concern about a potential tech stock bubble. The Bank of England and the International Monetary Fund warned this month that valuations driven by AI enthusiasm could face sharp corrections if expectations falter.
