Nvidia Corporation has become the first publicly traded company in history to reach a market valuation of $5 trillion, marking a defining moment in the global technology and financial landscape.
The semiconductor giant’s stock rose more than 5 percent on Tuesday, pushing its market capitalisation beyond the $5 trillion threshold — a milestone driven largely by surging global demand for artificial intelligence (AI) infrastructure.
According to data compiled by Reuters, The Verge, and The Guardian, the company’s ascent was fueled by record-breaking sales of its AI processors, which now power data centers, autonomous systems, and next-generation supercomputers worldwide.
“This is not just a financial milestone — it’s a signal that AI has become the central driver of the global economy,” said tech analyst Mira Patel of Global Insights Research. “Nvidia’s chips are the picks and shovels of the AI revolution.”
The company’s valuation now surpasses the GDP of nations such as Japan and Germany, putting it ahead of long-time market leaders Microsoft and Apple, both hovering just under the $4 trillion mark.
A meteoric rise
Nvidia’s growth trajectory has been nothing short of extraordinary. The firm crossed the $1 trillion mark in mid-2023, $2 trillion by early 2024, and surged past $4 trillion earlier this year. Its data-center division alone has quadrupled in revenue in under two years.
CEO Jensen Huang, who co-founded Nvidia in 1993, hailed the achievement as “proof that accelerated computing and generative AI are transforming every industry on Earth.”
Market optimism — and caution
Investors have poured capital into Nvidia amid unprecedented enthusiasm for AI technology. Yet, some analysts warn that such valuations rest heavily on expectations rather than immediate returns.
“Valuations of this magnitude depend on sustained AI adoption,” warned financial strategist Raymond Chu of Nomura Markets. “Any slowdown in enterprise spending or policy shocks — such as export controls — could test investor confidence.”
The broader picture
The $5 trillion milestone underscores how the AI boom has reshaped the global tech hierarchy, with chipmakers now holding as much influence as software and cloud giants once did. Nvidia continues to expand its reach into robotics, healthcare, climate modelling, and autonomous vehicles through new hardware and software ecosystems.
Industry observers say the company’s influence may soon extend to telecom and national infrastructure, as governments race to secure advanced chips for domestic AI development.
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