The U.S.-based tech giant Nvidia on Wednesday became the first publicly traded company in the world valued at $5 trillion, fueled by soaring investor confidence in the artificial intelligence (AI) boom and record demand for its advanced chips.
Shares of Nvidia climbed 4.5% to $210.11, pushing its market capitalization to $5.1 trillion. The milestone comes less than four months after Nvidia crossed the $4 trillion mark in July, marking one of the fastest trillion-dollar gains in corporate history.
Driven by global demand for its graphics processing units (GPUs) — vital for AI training, data centers, and gaming — Nvidia’s stock has surged 51% so far this year. The company continues to dominate the AI hardware market with upcoming product launches, including an updated quantum computing platform and new partnerships with OpenAI, Palantir, and other AI leaders.
“Nvidia’s chips remain the new oil or gold in this world for the tech ecosystem as there is only one chip fueling this AI revolution — and it’s Nvidia,” said Dan Ives, analyst at Wedbush Securities.
The milestone underscores how AI is reshaping the global tech landscape, much like Apple’s iPhone did nearly two decades ago. Apple was the first company to reach $1 trillion, $2 trillion, and later $3 trillion valuations.
However, some analysts warn of a potential AI-driven market bubble. The Bank of England recently cautioned investors about inflated tech stock prices, while Jeff Buchbinder of LPL Financial compared the current rally to the dot-com boom — though he noted that today’s tech giants have “strong business models generating massive cash flow,” making them more resilient.
With its unmatched dominance in AI chips and expanding product portfolio, Nvidia’s record-breaking valuation cements its position at the heart of the global AI revolution.