🔗 Share this article

Nvidia now stands as the pioneering $5 trillion company, just three months after this tech leader initially surpassed the $4tn market value mark.

In comparison, Nvidia’s worth is greater than the GDP of India, Japan and the United Kingdom, as reported by the International Monetary Fund (IMF).

Soon after American exchanges began trading on Wednesday, Nvidia’s stock reached over $207 with 24.3bn shares outstanding, putting its market capitalization at $5.05tn.

Strong demand for Nvidia’s chips, regarded as the top-tier in powering artificial intelligence software and tools, is the main reason that the company’s stock price has surged dramatically from the start of last year.

The wider US stock market has hit multiple record highs recently, buoyed up by expansive investment in AI technology.

Key Developments and Strategic Moves

On Tuesday, Nvidia’s Chief Executive, Jensen Huang, disclosed $500bn in chip orders.

Nvidia also unveiled a collaboration with Uber on robotaxis and a $1 billion investment in the telecom firm, with the parties aiming to work together on 6G technology.

In addition, Nvidia is joining forces with the US Department of Energy to build seven new AI supercomputers.

Last month, Nvidia announced that it will invest $100 billion in OpenAI as within a joint effort that will add at least 10 gigawatts of AI computing facilities to ramp up the computing power for the developer of the AI assistant ChatGPT.

This past summer, Huang said Nvidia was discussing a potential new processor tailored to the Chinese market with the former U.S. government.

Donald Trump said on Air Force One that he would discuss with the Chinese president, Xi Jinping, about Nvidia’s technology later this week.

AI Boom and Market Impact

Reaching this milestone puts more emphasis on the transformation caused by an AI frenzy that is considered the biggest tectonic shift in the tech sector after the Apple co-founder Steve Jobs introduced the first iPhone nearly two decades back.

The tech giant capitalized on the smartphone’s popularity to emerge as the first publicly traded company to be worth $1 trillion, $2 trillion and eventually, $3 trillion.

Potential Concerns

But there are concerns of a possible AI bubble, with UK central bank representatives recently pointing out the growing risk that equity values pumped up by the AI boom could burst.

The head of the IMF has raised a similar alarm.