In a record-setting sprint, Nvidia has leapfrogged from a $4 trillion to a $5 trillion valuation in just three months. The chipmaker became the world’s first $5 trillion company on Wednesday, with its market cap hitting $5.05 trillion as the AI-fueled US stock market continues to break records.
This incredible acceleration is a testament to the tech industry’s massive pivot to artificial intelligence, a shift that relies almost entirely on Nvidia’s advanced chips. The company has far outgrown its competitors, and its value is now greater than the individual GDPs of India, Japan, or the UK.
The company’s order book stands at a staggering $500 billion. This demand is being supercharged by new ventures, including a robotaxi deal with Uber and a $1 billion investment in Nokia to pioneer 6G technology.
Nvidia’s most crucial partnership is with OpenAI, the creator of ChatGPT. Nvidia is investing $100 billion in the AI leader to fund a massive 10-gigawatt expansion of AI datacenters, all powered by Nvidia’s own technology.
This AI craze, seen as the biggest tech shift since the iPhone, also has political backing. President Donald Trump, who owns Nvidia shares, praised CEO Jensen Huang and is even considering allowing chip sales to China. Despite the euphoria, economic watchdogs from the Bank of England to the IMF are warning that this AI boom could be an inflationary bubble.
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