Artificial intelligence chipmaker Nvidia reached a historic milestone on Wednesday, becoming the world’s first $5 trillion company amid surging investor confidence in the transformative power of AI.
Shares of the California-based tech giant rose 4.91% to $210.90 at the opening of trading on Wall Street, lifting its market capitalization beyond a level greater than the GDP of France or Germany, and surpassing the combined worth of Tesla, Meta (Facebook), and Netflix.
Nvidia’s valuation now places it comfortably ahead of Microsoft and Apple, which each hover slightly above the $4 trillion mark.
The company’s meteoric rise follows robust sales, a string of high-profile partnerships — including a deal with Nokia announced Tuesday — and speculation that it could soon regain access to China’s market.
“While it’s almost unfathomable to think about a company reaching this milestone, it comes from a firm with operational efficiencies and constant deal-making,” said Art Hogan of B. Riley Wealth Management. “Nvidia is far ahead of any competitor trying to catch up.”
Nvidia CEO Jensen Huang is expected to visit South Korea this week during the APEC summit, where U.S. President Donald Trump and Chinese President Xi Jinping will discuss AI cooperation and trade tensions.
Currently, Nvidia chips are barred from sale in China due to national security restrictions and Chinese government bans, though the Trump administration is reportedly exploring a more measured export policy.
The company has also unveiled a series of bold investments, including $100 billion in OpenAI and $5 billion in Intel, aligning with Washington’s push to expand semiconductor manufacturing in the United States.
Nvidia’s GPUs (graphics processing units) power most generative AI systems, including ChatGPT, and have positioned the firm as the cornerstone of the global AI infrastructure boom.
While some analysts warn that AI valuations may be entering bubble territory, reminiscent of the 1990s dot-com era, Nvidia’s fundamentals remain strong.
“Nvidia’s growth trajectory is still solid,” said Sam Stovall of CFRA Research. “News surrounding the company will likely get better, not worse — but valuations are high and could be vulnerable to shocks.”
The AI revolution has already turned OpenAI into the world’s most valuable private company, with a $500 billion valuation, reinforcing a market belief that artificial intelligence will define the next era of global innovation.
