WASHINGTON (BN24)— Nvidia became the first company to reach a $5 trillion market value on Wednesday, a milestone fueled by strong demand for artificial intelligence technology. The chipmaker’s valuation now exceeds the GDP of every country except the United States and China, according to World Bank data.
The company’s rise has been rapid. Three months ago, Nvidia was worth $4 trillion. Slightly more than two years ago, its market value was $1 trillion. Shares opened more than 3% higher on Wednesday.
Nvidia’s growth has become a symbol of the broader AI investment boom. The surge has created billionaires among top shareholders but has also raised concerns that the market may be overvalued, drawing comparisons to the internet bubble of the late 1990s.
The milestone follows Nvidia CEO Jensen Huang’s annual AI conference in Washington, D.C., where he announced partnerships and deals with companies including Nokia and Uber. Huang said he expects $500 billion in AI chip orders through next year. In an interview with NBC News, Huang said AI companies are generating “real revenues” and selling profitable products.
Nvidia’s $5 trillion market capitalization is larger than the combined value of its competitors, including AMD, Intel, Broadcom, TSMC, Micron, ASML, Lam Research, Qualcomm, and Arm Holdings. The stock has risen more than 50% this year and more than 1,500% over five years. In comparison, the S&P 500 has gained 17% this year, and the Nasdaq 23%.
Shares were also boosted on Tuesday after former President Donald Trump said he would discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping during a meeting in South Korea. Blackwell is Nvidia’s most powerful AI chip. Sales to China have been restricted over concerns that Beijing could gain a technological advantage. The U.S. government has sent mixed signals about AI chip exports. Commerce Secretary Howard Lutnick said in July that while the top three tiers of technology cannot be sold to China, lower-tier AI technology may be exported.
Investors and economists are watching closely as Nvidia reaches this historic valuation, balancing excitement over AI’s potential with caution over high stock prices.
