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Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value

Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value

The market value of Nvidia is now more than the GDP of every country on earth, except for the US and China. Photograph: (AFP)

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The Santa Clara-based company is at the centre of the global AI boom, and its market capitalisation now exceeds the total valuation of the cryptocurrency market and is roughly half the size of Europe’s Stoxx 600 index.

Nvidia has become the first company in history to reach a market value of USD 5 trillion, riding on the artificial intelligence boom that is reshaping technology, businesses, and markets across the globe. Nvidia shares opened up more than 3% on Wednesday, and its market value is now more than the GDP of every country on earth, except for the US and China, according to World Bank data. The stock has gained more than 50% this year and more than 1,500% over the last five years. Nvidia’s sharp rise highlights its transformation from a graphics-chip designer into the backbone of the booming AI industry. The steep rise has turned CEO Jensen Huang into one of Silicon Valley’s most influential figures and the company is now at the centre of the US-China tech rivalry.

Since 2022—the year of ChatGPT launch—Nvidia’s shares have surged 12 times as the AI frenzy pushed the S&P 500 to record highs, sparking both fear and debate over whether soaring tech valuations could trigger another market bubble.

The firm reached the $5 trillion market capitalisation just three months after crossing $4 trillion. Moreover, the new valuation surpasses the total worth of the global cryptocurrency market and now equals nearly half of Europe’s benchmark Stoxx 600 index.

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Rise follows record orders and supercomputing plans

The Santa Clara-based company’s shares rose 3.5% after a series of announcements reinforced its leadership in the AI race. On Tuesday, Nvidia President and CEO Jensen Huang unveiled AI chip orders worth $500 billion and announced plans to build seven supercomputers for the US government.

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At current prices, Huang’s stake in Nvidia is worth about USD 177.3 billion, making him the world’s eighth-richest person, according to Forbes.

Taiwan-born Huang, who was raised in the US from the age of nine, founded Nvidia in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the core engines behind large-language models such as ChatGPT and Elon Musk’s xAI.

The rally reflects investor confidence in sustained AI spending, though some warn that valuations may be running hot.

Nvidia’s performance has a sweeping influence across global markets now.

Moreover, US President Donald Trump is likely to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday since the sale of the high-end chip has been a sticking point in ongoing tensions between the two countries, particularly amid Washington’s export controls on advanced semiconductors.

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Anuj Shrivastava

Anuj Shrivastava is a Senior News Editor at WION Digital with over 20 years of experience across publishing, print, and digital media. He’s passionate about news, has a penchant fo...Read More

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