Nvidia now stands as the pioneering $5 trillion company, only a quarter following the Silicon Valley chipmaker initially surpassed the $4tn market value mark.
In comparison, Nvidia’s value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund (IMF).
Soon after US stock markets opened on Wednesday, Nvidia’s stock reached over $207 with 24.3bn shares outstanding, putting its market cap at $5.05tn.
Strong demand for Nvidia’s chips, seen as the most cutting edge in powering AI products and software, is the main reason that the share value has surged dramatically since early 2023.
American equities has hit new peaks recently, buoyed up by massive funding in AI technology.
On Tuesday, Nvidia’s CEO, Jensen Huang, disclosed $500bn in chip orders.
Nvidia also unveiled a partnership with the ride-hailing service on robotaxis and a $1bn funding in the telecom firm, with the parties aiming to work together on next-generation networks.
In addition, Nvidia is teaming with the American energy agency to build multiple AI supercomputers.
Recently, Nvidia announced that it will commit $100bn in an AI research organization as part of a partnership that will include at least 10GW of Nvidia AI datacenters to ramp up the processing capacity for the developer of the artificial intelligence chatbot ChatGPT.
This past summer, Huang mentioned Nvidia was discussing a prospective computer chip tailored to the Chinese market with the former U.S. government.
Donald Trump remarked on Air Force One that he would speak with the China's leader, Xi Jinping, about Nvidia’s technology on Thursday.
Reaching this milestone puts more emphasis on the transformation being unleashed by an artificial intelligence craze that is considered the biggest tectonic shift in technology after the tech pioneer Steve Jobs unveiled the original smartphone 18 years ago.
Apple rode the iPhone’s success to emerge as the initial listed firm to be valued at $1 trillion, $2 trillion and finally, $3tn.
However, worries exist of a possible AI bubble, with UK central bank representatives recently pointing out the increasing danger that tech stock prices pumped up by the artificial intelligence surge could burst.
IMF’s managing director has raised a similar alarm.
A seasoned gaming journalist with over a decade of experience covering esports and indie game developments.
Samuel Berry
Samuel Berry
Samuel Berry
Samuel Berry