Nvidia becomes the first company to reach $5 trillion valuation with the help of AI boom
Nvidia made history on Wednesday by becoming the first company to reach a market value of $5 trillion on the back of a surprise rally and a global artificial intelligence boom.
The milestone underlines the company’s sharp transformation from a niche graphics-chip designer into the backbone of the global AI industry, turning CEO Jensen Huang into a Silicon Valley icon and making its advanced chips a flashpoint in the tech rivalry between the US and China.
Since ChatGPT’s launch in 2022, Nvidia shares have soared 12-fold as the AI frenzy sent the S&P 500 to record highs, sparking debate over whether frothy tech valuations could lead to the next big bubble.
The new milestone comes just three months after Nvidia crossed the $4 trillion mark,
“In the long run, we expect tech titans will attempt to diversify away from Nvidia in AI by finding second-source or in-house solutions, but these efforts will only chip away at, but not replace, Nvidia’s AI dominance,” said Brian Colello, senior equity analyst at Morningstar.
Shares of the Santa Clara, California-based company rose 4.6 percent after recent announcements solidified its dominance in the AI race.
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Huang disclosed a $500 billion AI chip order on Tuesday and said he planned to build seven supercomputers for the US government.
Meanwhile, US President Donald Trump is expected to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday. High-end chip sales have been a sticking point in trade talks between the two sides because of Washington’s export controls.
Serge increases Huang’s wealth
At current prices, CEO Huang’s stake in Nvidia would be worth about $179.2 billion, according to regulatory filings and Reuters calculations. According to the Forbes billionaire list, he is the eighth richest person in the world.
Born in Taiwan and raised in the United States from the age of nine, Huang has led Nvidia since its founding in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the engines behind big-language model powering tools like ChatGPT and Elon Musk’s XAI.
While Nvidia remains the biggest insider in the AI rage, Big Tech peers like Apple and Microsoft have also recently surpassed $4 trillion in market value (Apple). just yesterday she crossed the border,
Analysts say the rally reflects investor confidence in continued AI spending, though some caution that valuations could be overheated.
Matthew Tuttle, CEO of Tuttle Capital Management, said, “The current expansion of AI depends on a few major players financing each other’s capabilities. As investors begin to demand cash-flow returns rather than capability announcements, some of these flywheels may seize up.”
The heavy weighting of tech companies in the S&P 500 and Nasdaq 100 gives them broad influence on global markets.
Nvidia is scheduled to report quarterly results on November 19.
geopolitical bargaining chip
The company’s dominance has drawn global regulatory scrutiny, with US export restrictions on advanced chips making it a key pawn in Washington’s strategy to limit China’s access to AI technology.
“Nvidia clearly brought its story to DC to educate and lobby the US government,” said Bob O’Donnell of Technalysis Research. “They managed to hit the hottest and most impactful topics in technology.”
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of the company developer conference on tuesday It also served as a platform for Huang to walk the geopolitical tightrope.
He praised Trump’s “America First” policies to accelerate domestic tech investment, while warning that excluding China from Nvidia’s ecosystem could limit US access to half of the world’s AI developers.
Rivals including Advanced Micro Devices and several well-funded startups are trying to challenge Nvidia’s dominance in high-end AI chips, but it remains the industry’s top choice.
