Nvidia crossed the $5 trillion mark for the first time on Wednesday, boosted by explosive demand for its chips, which are used to train and run artificial intelligence systems.
Nvidia crossed the $5 trillion mark for the first time on Wednesday, boosted by explosive demand for its chips, which are used to train and run artificial intelligence systems.
According to Reuters, Nvidia shares rose by about 4,6%, taking its market capitalization to over $5 trillion less than three months after breaking the $4 trillion mark. Since ChatGPT launched in 2022, the company’s shares have risen 12 times in value as investors bet that Nvidia chips will power most new AI-based IT solutions.
Recent announcements have further strengthened the manufacturer’s position, with a backlog of orders for chips worth about $500 billion and the announcement of the construction of seven supercomputers for the US government. This reinforces market expectations for new waves of demand from cloud providers, large corporations and government programs.
The scale of the valuation is clearly visible in the comparisons: Nvidia’s market value already exceeds the total capitalization of the crypto market and is approximately equal to half of the Stoxx 600 index in Europe. The next marker for investors will be the quarterly report, which the company will publish on November 19.
There is also a personal dimension to the record. The fortune of co-founder and CEO Jensen Huang is estimated at around $179 billion. It was the generation of Nvidia accelerators (from H100 to Blackwell) that became the standard for training large language models and services like ChatGPT and xAI.
Geopolitics also remains a factor for Nvidia’s business. The US maintains export restrictions on its most powerful chips to China, and the issue of supplies has become part of broader talks between Washington and Beijing. US President Donald Trump is expected to discuss the Blackwell chip and the rules for Chinese companies to access it with Xi Jinping.
Analysts attribute the record valuation to a belief in continued spending on AI computing power, but warn of the risk of «overheating»: the current growth phase is based on a few dominant hardware and cloud providers. Competitors, including AMD and a number of startups, are already launching alternatives, but Nvidia still maintains its lead in the upper performance segment. As a result, the influence of several tech giants on the S&P 500 and Nasdaq indices is growing, and the market is closely watching whether Nvidia’s reporting will confirm the growth rates after the historic milestone of $5 trillion.
Previously, dev.ua wrote about how Nvidia Corporation is acquiring a stake in Nokia worth $1 billion and plans to supply the Finnish telecommunications company with artificial intelligence-based chips for wireless networks.
