AI Frenzy

Nvidia Hits $5 Trillion Valuation

Nvidia has become the first company in the world to reach a $5 trillion market cap, after shares jumped on fresh AI chip orders and new supercomputer plans.  

The rally cements Nvidia's role as the driver of the global AI boom. 

• The new $5 trillion milestone came just three months after Nvidia became the first company to cross $4 trillion market cap.
• Microsoft and, just earlier this week, Apple have since crossed the $4 trillion threshold.
• Nvidia CEO Jensen Huang’s stake is now worth almost $180 billion.

Nvidia’s Rise to the Top 

In just three years, Nvidia has transformed from a niche graphics-chip designer favored by video game enthusiasts into the world’s most valuable company. 

Its AI processors now power everything from ChatGPT to national supercomputers, and its market cap has surged twelvefold since 2022. 

This has led some analysts and institutions, including the IMF and the Bank of England, to warn that if the AI boom proves to be a bubble, the stability of the global stock markets is at risk.

Nvidia’s AI Empire Expands

Nvidia is pouring billions into shaping the future of AI infrastructure. 

Some of the recent deals and partnerships include: 

• US government: Announced plans for multiple supercomputers.
• OpenAI: Pledged up to $100 billion to deploy Nvidia technology for pioneering AI models.
• Intel: Investing $5 billion to co-develop AI-optimized CPUs and back Intel’s chip-making ambitions.
• Nokia: Took a 2.9% stake for $1 billion in the network equipment company to fuse AI computing with 6G cellular technology.

Nvidia just became the world’s first $5 trillion company, establishing itself as the core power behind the AI boom.