Nvidia on Wednesday became the first company in history to cross the $5 trillion market capitalization threshold, capping a meteoric rise that underscores its central role in the artificial intelligence revolution and its dominance in the global semiconductor industry.
Shares of the Santa Clara-based tech giant surged more than 4% during trading, extending gains from Tuesday when the stock closed up 5%. Nvidia’s valuation milestone marks another high point in a rally that has already lifted its shares more than 50% year-to-date, making it the world’s most valuable company and the biggest beneficiary of the ongoing AI investment wave.
The company’s remarkable ascent—from a maker of graphics processors for video games to the undisputed leader in AI computing—has reshaped global markets and investor sentiment. Nvidia’s chips now power everything from OpenAI’s large language models to supercomputers used in scientific research, defense, and autonomous driving.
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The latest rally came shortly after CEO Jensen Huang revealed that Nvidia expects to receive $500 billion in AI chip orders, an outlook that further boosted investor optimism about long-term demand. Huang also announced that the company will build seven new supercomputers for the U.S. government, strengthening its leadership in the race for advanced AI infrastructure.
Separately, Nvidia disclosed a major new investment, taking a $1 billion stake in Nokia as part of a strategic partnership to develop next-generation 6G cellular technology. The collaboration will focus on integrating AI into future telecommunications systems, signaling Nvidia’s intention to extend its reach beyond data centers and cloud computing into core network infrastructure.
The company’s $5 trillion milestone also comes amid a broader surge across the U.S. stock market, largely fueled by AI-related optimism. On Tuesday, all three major indexes closed at record highs, driven by gains in technology stocks. Apple and Microsoft each topped the $4 trillion valuation mark, joining Nvidia in a record-setting trio that now dominates global equity markets.
The extraordinary rally, however, has raised concerns among economists and regulators about the sustainability of current valuations. Both the International Monetary Fund (IMF) and the Bank of England recently warned that global stock markets could face sharp corrections if investor appetite for AI-driven assets begins to cool.
Even amid those warnings, leading investors remain bullish on AI’s long-term potential. Cathie Wood, CEO of Ark Invest, acknowledged the possibility of a short-term “reality check” but dismissed fears of an AI bubble. Speaking to CNBC on the sidelines of the Future Investment Initiative (FII) summit in Riyadh on Tuesday, Wood said: “If our expectations for AI are correct, we are at the very beginning of a technology revolution.”
Some analysts believe Nvidia’s ascent to $5 trillion represents more than just a symbolic milestone—it reflects a structural shift in the global economy, where artificial intelligence, semiconductors, and computing infrastructure have become the new cornerstones of growth and innovation.
With demand for AI chips still accelerating, Nvidia’s next challenge will be to maintain its technological lead amid intensifying competition from rivals such as AMD, Intel, and a growing list of AI-focused startups. But for now, its record valuation stands as the clearest testament to the scale of the AI-driven transformation sweeping across global markets.