Nvidia Reaches Historic $5 Trillion Valuation Amid Growing AI Investment Concerns

Nvidia hits record $5 trillion mark as CEO dismisses AI bubble concerns

On Wednesday, Nvidia became the first company in history to reach a $5 trillion market capitalization, fresh on the heels of a GTC conference keynote in Washington, DC, where CEO Jensen Huang announced $500 billion in AI chip orders and plans to build seven supercomputers for the US government. The milestone comes a mere three months after Nvidia crossed the $4 trillion mark in July, vaulting the company past tech giants like Apple and Microsoft in market valuation but also driving continued fears of an AI investment bubble. Nvidia's shares have climbed nearly 12-fold since the launch of ChatGPT in late 2022, as the AI boom propelled the S&P 500 to record highs. Shares of Nvidia stock rose 4.6 percent on Wednesday following the Tuesday announcement at the company's GTC conference. During a Bloomberg Television interview at the event, Huang dismissed concerns about overheated valuations, saying, "I don't believe we're in an AI bubble. All of these different AI models we're using -- we're using plenty of services and paying happily to do it." Nvidia expects to ship 20 million units of its latest chips, compared to just 4 million units of the previous Hopper generation over its entire lifetime, Huang said at the conference. The $500 billion figure represents cumulative orders for the company's Blackwell and Rubin processors through the end of 2026, though Huang noted that his projections did not include potential sales to China. While it probably feels like glory days for Nvidia at the moment, the success comes with a large dose of caution. Even prior to the latest valuation boom of the past 24 hours, the rapid rise in AI-related investments has fueled persistent concerns that market enthusiasm has outstripped the technology's ability to deliver immediate economic value. Some analysts warn that valuations may be overheated. Matthew Tuttle, CEO of Tuttle Capital Management, told Reuters that "AI's current expansion relies on a few dominant players financing each other's capacity. The moment investors start demanding cash flow returns instead of capacity announcements, some of these flywheels could seize."

The AI industry is running on FOMO

For Big Tech, a penny invested in AI is a penny earned... Maybe. After an indeterminate amount of time. Investors hope. On earnings calls last week, Amazon, Google, Microsoft, and Meta reported more than $350 billion this year on capital expenditures, or longer-tail investments in a company's future. All four told investors to expect the number to skyrocket even further next year: Microsoft said "higher," Amazon an "increase," Google a "significant increase," and Meta "notably larger." That probably translates to more than $400 billion total for the four companies next year, according to Joe Fath, partner and head of growth at Eclipse VC. The return on investments for these companies so far is opaque. Dedicated AI companies are burning through cash in the meantime: OpenAI reportedly hit $12 billion in annualized revenue this summer -- while reportedly being on track to burn through $115 billion through 2029. Tension over this mismatch, Fath said, is ratcheting up. There's a "push and pull between those companies and investors," he added. "Investors are saying, 'Am I going to get a return on this spend?'" It's one of the increasingly clear indicators that some parts of the AI industry are a bubble -- but it doesn't yet tell us what happens after it pops. AI hype has remained extremely high for several years, and startup valuations have hit eye-popping numbers. OpenAI, for instance, is reportedly hoping for a $1 trillion IPO in 2026 or 2027 and planning to raise $60 billion or more. But AI companies insist there's still not enough money for chips, data centers, and other resources. In a Q&A with reporters at OpenAI's annual DevDay event last month, executives repeatedly emphasized their concern over lack of compute to expand services like Sora's video-generation AI and ChatGPT's daily Pulse feature, and discussed the need to eventually turn a profit from such services. Amazon, Google, and Microsoft -- which provide cloud services on a quickly growing scale -- have "all called out being pretty capacity-constrained," Molly Alter, a partner at Northzone VC, told The Verge. If these claims are accurate, they indicate that simply coming up with good products won't be enough to make AI companies profitable -- because they can't afford to scale those products to support a huge user base. Even if they're exaggerated, the systems are incredibly costly to operate. OpenAI is still thought to be losing money on even the $200 monthly subscription tier of its ChatGPT service, thanks to the cost of running queries. OpenAI's rumored IPO is a perfect example of the conundrum, Alter added. The company wants to secure about 26 gigawatts of computing capacity for data centers (which translates to about $1.5 trillion at current costs, per Alter) -- meaning that even with the company's current revenue, an up to $100 billion investment from Nvidia, and other "circular deals," Alter says she still hasn't been able to understand how the company's clear funding gap gets solved. Some investors in the company are asking the same questions. Brad Gerstner, an OpenAI investor and CEO of Altimeter Capital, asked OpenAI CEO Sam Altman on his podcast Friday about how a company with $13 billion in revenue can make $1.4 trillion in spending commitments. "First of all, we're doing well more revenue than that; second of all, Brad, if you want to sell your shares, I'll find you a buyer," Altman replied. "I just... Enough." In past quarters, Big Tech executives have presented customizable models and AI agents as a saving grace that will surely, eventually, turn a profit -- reiterating that they need to spend money to make money, including by cutting costs elsewhere and diverting the resources to AI. Now, though, agents from OpenAI, Google, and others are in users' hands. And though companies promise they'll steadily improve at automating "tedious tasks," in their current state, they're not taking the world by storm. Investors seemed concerned with the details of Meta's projected expansion, and their demands for specifics weren't always met with clear answers. "There are lots of moving pieces in the budget. It's not baked yet. It's still sort of in the process of coming together," responded CFO Susan Li to one question. "We don't have, you know, specific targets to share." Some investors seemed wary about whether there's a coherent plan at all. Meta made headlines in 2025 for spending billions to lure AI engineers and researchers away from competitors for its brand-new Superintelligence team, then announced internal restructuring and layoffs soon after. Meta's AI initiative comes on the heels of a quixotic quest for the virtual reality "metaverse," in which it's so far spent and lost tens of billions through its Reality Labs division. "I don't think they're getting any results there that would lead you to believe that that's good spend," Fath told The Verge, speaking about Reality Labs. Some of the same concerns were present on other company earnings calls, with investors asking about the AI industry's hype levels, capacity constraints, and feature adoption. On Microsoft's earnings call, one investor asked, "Frankly, are we in a bubble?" Even tech executives have admitted some aspects of the industry may be overblown. OpenAI's Altman told reporters last month that there are "many parts of AI that I think are kind of bubble-y right now." And on Microsoft's latest earnings call, CEO Satya Nadella told investors, "I don't think AGI as defined, at least by us in our contract, is ever going to be achieved anytime soon." But bubbles are largely driven by sentiment and behavior, as well as fear of missing out and expertly marketed corporate narratives. If it is a bubble, the consensus seems to be that it's one that won't explode the industry; rather, it'll just lead to fewer players and more consolidation. Alter said the funding gaps within the industry keep her up at night, especially since a company's investment in its future growth has to ideally lead to, well, real growth and profit in the end. The companies that succeed may not be the most glamorous or consumer-facing -- think coding agents, customer service AI, and potentially creative content generation, rather than solely AI social networks and all-purpose chatbots. But there's no fighting AI FOMO, and so any bubble-y parts of the industry have no sign of slowing down just yet -- but Fath said he's watching for if or when OpenAI slows down for any reason, and the same goes for Nvidia's data center business. "My sense is, when a board is sitting there, they're asking the CEO, 'What are you doing about AI?'" Fath said. "That's the question they're getting. And they need to come in with an answer prepared to say how they're going to spend on that. And if the business starts to deteriorate, and they're not spending in AI, there's going to be a lot of criticism of those executives... even if we really don't know what the returns will look like right now." "This gets into that whole 'FOMO' that's building across industries and across companies to make sure that you're not on the wrong side of change." And if over-investing in AI becomes the wrong side of change? Well, at least everyone was doing it.

Nvidia's market capitalization hits $5.12 trillion -- AI powerhouse is the first company in history to hit seismic milestone

The market capitalization of Nvidia passed the $5 trillion mark on Wednesday, following a host of potentially lucrative deals and projects the company announced at its GPU Technology Conference event on Tuesday. The company's stock price continues to be driven by the broad interest towards artificial intelligence and Nvidia's unique position in the AI supply chain that now spans from humble chips for inference to gigawatt-scale data centers for massive AI training. At its GTC 2025 conference in Washington, D.C., Nvidia made a number of announcements that could potentially bring tens, if not hundreds, of billions of dollars in revenue to the company in the coming years. Among the highlights announced by Nvidia are reference designs for gargantuan gigawatt-scale AI data centers that will let newcomers to build new AI factories using Nvidia blueprints and hardware; partnership with Palantir to build an integrated stack for operational AI; the deal with Uber to use Nvidia's Level 4 AGX Drive Hyperion platform for its fleet of autonomous robotaxis as well as adoption of the same platform by Mercedes, Stellantis, Volvo, Lucid, and Foxconn; NVQLink technology to attach Nvidia GPUs to quantum computers; partnership to build AI-RAN products with Nokia; contracts to build seven AI supercomputers for the U.S. government; and plans to build AI-native 6G networks in the U.S. together with partners. The new announcements place Nvidia at the center of the large-scale AI supply chain, which will drive demand for the company's hardware and software solutions. Nvidia's AI platform comprises numerous products, including GPUs, CPUs, DPUs, NVLink switches, and Ethernet and Infiniband solutions. If one wants to build an Nvidia-based cluster or data center for AI, they will inevitably procure plenty of Nvidia-designed hardware and software to build it and operate it. While for now Nvidia supplies AI hardware to companies like AWS, Alphabet, Google, Microsoft, OpenAI, and xAI, in the coming years, it is going to expand its total addressable market to both established players across industries (e.g., Lilly is already building its own AI data center) and new players that have yet to become significant in their realms. Even established companies are increasing their demands for AI GPUs. For example, Nvidia supplied about four million Hopper-based AI GPUs throughout the architecture's active lifetime, and shipments of Blackwell stand at six million units now and yet have to peak. With new participants entering the AI field, sales of Nvidia's hardware are poised to skyrocket. Nvidia's unique position in the growing AI supply chain places it well above other semiconductor and high-tech companies as far as market capitalization is concerned. The company at press time cost over a trillion dollars more than Apple ($4.011 trillion) and Microsoft ($3.995 trillion), nearly two trillion dollars more than Alphabet ($3.257 trillion), and two times more than Amazon ($2.444 billion). Interestingly, TSMC -- the key supplier to Nvidia that produces all of its silicon -- now has a market capitalization of $1.582 trillion, whereas ASML -- the key supplier to TSMC -- now costs $416.5 billion. Market capitalization of Nvidia's traditional rivals -- AMD and Intel -- stands at $429 billion and $197 billion, respectively.

Nvidia, OpenAI, and the trillion-dollar loop

How to build a trillion-dollar industry: Step 1, invest in your customers. Step 2, sell them stuff Feature In late 2025, a series of multi-billion-dollar deals in the artificial intelligence sector is causing déjà vu among industry veterans. Money, computer chips, and cloud credits are rotating in a closed loop among a handful of companies: Nvidia, OpenAI, Microsoft, Oracle, AMD, CoreWeave, xAI, and a few others. This has fueled a trillion-dollar AI boom or bubble built on intertwined investments and contracts. The arrangement of these deals is so circular that dollars spent by one player often return as revenue for another. This gives the impression of breakneck growth. Critics are increasingly comparing this AI money-go-round to the late 1990s dot-com bubble. They question whether today's AI valuations are inflated by self-reinforcing deals rather than organic user demand. At the heart of this circular economy is Nvidia, the world's most valuable semiconductor company, which recently reached a $5 trillion market capitalization. Nvidia's GPUs, moreso than any other company's, have become the critical hardware that powers advanced AI models like ChatGPT. Surrounding Nvidia is an expanding constellation of partners and customers, many of which have also become its investors and investees. No deal epitomizes the circular AI economy better than the agreement between Nvidia and OpenAI announced in fall 2025. In September, Nvidia agreed to invest up to $100 billion in OpenAI to finance a massive buildout of AI data centers. The plan is for OpenAI to construct at least 10 gigawatts of new data center capacity (enough electricity to power a major city). In return for Nvidia's funding, OpenAI committed to purchasing and deploying millions of Nvidia GPUs at those facilities. This investment-for-hardware swap means Nvidia is bankrolling its own future sales. The startup gets the cash to expand, and Nvidia is guaranteed to be the supplier for that expansion. Critics immediately flagged the arrangement as circular, essentially moving money in circles to pad revenues. It is different from the dot-com era, where companies bought each other's ads with no real product. Here, physical assets (AI chips and data centers) are being built. Both companies are doing what they are set up to do: OpenAI needs chips, Nvidia sells chips, just with intertwined balance sheets. Still, the sheer scale of the deal has raised eyebrows. $100 billion is an unprecedented sum for one tech company to invest in a startup. For context, OpenAI was valued at around $30 billion in early 2023. This latest deal implied a far higher valuation and a massive bet on future AI demand. It also cemented Nvidia's role not just as a supplier but as one of OpenAI's most prominent backers. Nvidia boss Jensen Huang, in a recent podcast with Bill Gurley and Brad Gerstner on Bg2, said, "I think that OpenAI is likely going to be the next multi-trillion-dollar hyperscale company. If that's the case, the opportunity to invest before they get there, this is one of the smartest investments we can possibly imagine. And you've got to invest in things you know. The return on that money is going to be fantastic." Just weeks after the Nvidia pact, OpenAI struck another massive agreement, this time on the cloud service side. OpenAI confirmed a $300 billion deal (dubbed as Project Stargate) with Oracle Corporation to purchase cloud computing capacity over the next five years. The deal would see OpenAI use Oracle's cloud infrastructure to run and train AI models at scale, with Oracle adding 4.5 GW of new data center capacity by 2027. The circular twist? To fulfill OpenAI's compute demand, Oracle must spend heavily on hardware, primarily buying Nvidia's chips. According to the Financial Times, Oracle plans to spend around $40 billion to acquire roughly 400,000 of Nvidia's top-tier GB200 chips to power Stargate's flagship data center in Abilene, Texas. This Stargate triangle created instantaneous value on paper. When news of the OpenAI-Oracle deal broke, Oracle stock spiked 36 percent in a day, its most significant jump in decades. Even Oracle co-founder Larry Ellison's net worth swelled by $88 billion virtually overnight, briefly making him the world's richest person. Nvidia's stock also popped 4 percent on the Oracle news to add another $170 billion to its market cap. These deals provide planning security for all parties involved and help dominate AI infrastructure. Still, they also raise important questions about self-dealing and systemic risk if one link in the chain falters. Nvidia isn't the only chipmaker in OpenAI's orbit. In October 2025, OpenAI announced an alliance with Nvidia's main rival, AMD. This announcement signifies the considerable demand for compute chips and the need to diversify its hardware suppliers. The terms of the deal were for OpenAI to deploy 6 gigawatts of AMD's Instinct GPUs in its future infrastructure. This commitment could translate to tens of billions of dollars in chip purchases. In return, AMD granted OpenAI a warrant to purchase up to 160 million AMD shares, roughly a 10 percent equity stake, vesting in tranches aligned with the GPU deployment rollout. If OpenAI follows through on using all 6 GW of AMD hardware, it gets to become one of AMD's largest shareholders at a steep discount. Strategically, this deal secures a marquee customer for AMD and validates its AI chip as an alternative to Nvidia's dominant GPUs. "This partnership brings the best of AMD and OpenAI together to create a true win-win, enabling the world's most ambitious AI buildout and advancing the entire AI ecosystem," said Dr. Lisa Su, chair and CEO of AMD. "Our partnership with OpenAI is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI's AI infrastructure buildout. This agreement creates significant strategic alignment and shareholder value for both AMD and OpenAI and is expected to be highly accretive to AMD's non-GAAP earnings-per-share," said Jean Hu, EVP, CFO, and treasurer of AMD. The agreement highlights the frenzy in AI chip demand. OpenAI is so hungry for capacity that it's willing to tie itself financially to its suppliers to secure supply. No discussion of the AI circular economy is complete without CoreWeave, a once-small cloud startup that has become a major infrastructure partner for both OpenAI and Nvidia. Starting in early 2025, OpenAI began shifting some of its AI training workloads to CoreWave and signed an initial contract worth up to $11.9 billion for GPU cloud services, followed by a $4 billion expansion in May. By September 2025, a third expansion of $6.5 billion brought OpenAI's total CoreWeave commitments to $22.4 billion. CoreWeave's rapid scaling was enabled by Nvidia's backing. Nvidia took an equity stake of more than 5 percent in the company during its funding rounds. In September 2025, Nvidia agreed to purchase $6.3 billion in cloud services from CoreWeave. This unusual agreement by Nvidia to pre-purchase capacity on CoreWeave served as a guarantee. Nvidia would pay for any of CoreWeave's GPU time that wasn't sold to other customers. With Nvidia's safety net, CoreWeave would confidently buy even more Nvidia chips to build data centers. In simple terms, Nvidia was funding a customer and propping up the supplier that served that customer, thereby increasing its chip supply. The initial partnership of Microsoft and OpenAI in 2019-23 helped set the stage for today's loop. Microsoft invested $1 billion in 2019, then reportedly $10 billion in early 2023, in OpenAI, eventually obtaining a roughly 49 percent stake (with profit-sharing terms). In exchange, OpenAI agreed to use Microsoft Azure as its computing platform for several years. Fast forward to 2025, and the landscape has shifted. OpenAI's new mega deals with Oracle, CoreWeave, and others signaled that Microsoft's once exclusive hold on OpenAI's compute needs has loosened. Microsoft quietly allowed OpenAI out of certain exclusivity to pursue its own cloud buildout. Microsoft itself has diversified, integrating AI models from other startups like Anthropic and even open-source models like Meta's Llama. The circular deal dynamic here is subtler but present. Microsoft gave OpenAI funding and cloud credits. OpenAI returns value by driving Azure usage and requires more infrastructure, which means Microsoft buys more Nvidia GPUs for its data centers. It's not just corporations that are intertwined in the AI economy. The United States government itself has become both an enabler and a gatekeeper in these dealings. As part of the federal CHIPS Act initiative, the US government took an equity stake of roughly 9.9 percent in Intel, valued at $8.9 billion, and funded an additional $2.2 billion in grants to build domestic semiconductor manufacturing capacity. In exchange, the Commerce Department received 274.6 million Intel shares, with an option to acquire an additional 240 million shares under certain conditions. Traditionally, government incentives are not taken in the stock market, yet this shows how strategically important chip production is to national security. In the context of the AI circular economy, the government stake is a reminder that not all money in the loop is private. Public funds are being poured into shoring up the supply side rather than directly into AI companies, but it still feeds the broader ecosystem. If Intel succeeds in making advanced AI chips domestically, it could become a counterweight buyer/seller in the loop. Washington regulates market access (like restricting China) in ways to constrain where the loop's money can flow. This forces Nvidia, OpenAI, and others to focus inward and on allies. This may intensify the circular deal pattern, but it could also mitigate some bubble risk by preventing over-exuberant expansion into geopolitically risky matters. It's a thin balance between enabling innovation and preventing policy-driven artificial inflation of demand. All these arrangements, with OpenAI at the center, might not please accountants, who tend to view trade of this nature as deeply flawed. This is an industry sector getting fatter by eating itself. The levels of funding are unprecedented. The web OpenAI is spinning means its own success is inextricably linked to its suppliers. It's a clever move by CEO Sam Altman. However, if it backfires, he will set the industry back decades in terms of trust. It took years for tech to recover from the dotcom bust, and with the level of investment in AI infrastructure currently propping up the US economy, keeping it is out of recession, there's a lot more at stake. ®

Nvidia poised to become world's first $5tn company

Nvidia is set to become the world's first $5tn company after the US chip giant's stock was propelled by strong sales of its artificial intelligence systems and the prospect of expanded access to the Chinese market. The Silicon Valley-based company, which has been the biggest beneficiary of booming AI investment, was more than 3 per cent higher in pre-market trading on Wednesday, enough to push it over a $5tn market capitalisation when the market opens in New York. US President Donald Trump said on Wednesday that he planned to discuss Nvidia's Blackwell chip with China's President Xi Jinping when the two leaders meet later this week, raising the prospect that Nvidia could regain access to a lucrative market for its semiconductors. Nvidia's current generation of graphics processing units is not currently available in China because of US export controls. The chipmaker's shares had closed up 5 per cent on Tuesday, adding more than $200bn to its market capitalisation, after chief executive Jensen Huang said Nvidia had already secured half a trillion dollars in orders of its AI chips "so far" for the next five quarters. The stock milestone comes just three months after Nvidia became the first public company to hit a $4tn market capitalisation, and as shares in other US tech groups have also rocketed to record highs in recent months. Apple hit a $4tn valuation for the first time on Tuesday, while Microsoft hit the benchmark again after previously reaching it in July, propelled by the restructuring of OpenAI, in which it has a 27 per cent stake. Three years ago, before the debut of OpenAI's ChatGPT, Nvidia was valued at about $400bn. Its stock has grown explosively since then, fuelled by demand for its AI chip technology, which dominates the market for training and running large language models such as OpenAI's. The AI chipmaker surpassed $1tn in market value within months of ChatGPT's launch, hitting $2tn in February 2024 and $3tn in June last year. Nvidia's shares have risen more than 85 per cent in the past six months alone. Confidence in Nvidia's ability to sustain its growth has been boosted by a barrage of long-term, multibillion-dollar deals around the world this year to build the vast data centre infrastructure to train and run artificial intelligence models. "I think we are probably the first technology company in history to have visibility into half a trillion dollars of cumulative Blackwell and early ramps of Rubin through 2026," Huang said on Tuesday, referring to its current generation of chips and new chips it is set to launch next year. Bernstein analysts said Huang's projection meant Nvidia was on course for well over $300bn in chip sales in the 2026 calendar year, compared with Wall Street expectations of $258bn. The chipmaker's growth has been driven by huge spending by a small group of large tech companies seeking to build the infrastructure to power AI models. But Nvidia's competitors, including its own customers, are looking to seize a larger share of that hardware market. Nvidia has also moved to pump billions of dollars into its own customers, including a planned $100bn investment in OpenAI announced in September, raising questions about the circular financing arrangements used by the companies driving the AI boom. Capital spending by the top six cloud computing companies alone -- Amazon, Meta, Google, Microsoft, Oracle and CoreWeave -- would rise to $632bn by 2027, Huang said. Nvidia's growth has come despite tensions between Washington and Beijing this year that have choked off its access to China, costing the chipmaker billions of dollars in revenue from China-specific AI chips that were designed to comply with US export controls. Beijing in turn has mounted a backlash against Nvidia's chips as it seeks to decouple itself from American chip technology. On Tuesday, Huang conceded that Nvidia was locked out of the China AI chip market for now and would need to "wait until [China] wants us to be there". "Do they want to be open market or selectively open market?" asked Huang. "That's a question that they have to answer." Nvidia is also waiting for a 15 per cent revenue-sharing deal with the US government, struck earlier this year to allow it to continue exporting its chips to China, to be codified into a law. Huang has forged a close relationship with Trump, confirming this week that he had contributed to the US president's roughly $300mn White House ballroom project.

Nvidia nearly went under 3 years into its existence -- now it's the world's first-ever $5 trillion company

Nvidia CEO Jensen Huang gestures as U.S. President Donald Trump (not pictured) delivers remarks during the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025. Nvidia CEO Jensen Huang has said he "had no idea how" to start a business when he co-founded the computer chip company from a Denny's booth in 1993. His lack of experience didn't stop him from making history by building Nvidia into the world's first $5 trillion company, a benchmark it achieved on Wednesday. The tech giant's stock rose by 3% on Wednesday, closing with a record market value of $5.03 trillion, following Huang's Tuesday announcement of plans to build a series of supercomputers for the U.S. government. In the announcement, Huang forecasted an additional $500 billion in orders for Nvidia's AI chips. Nvidia's stock is up nearly 50% since the start of 2025, reflecting investors' enthusiasm for an artificial intelligence boom that's seen Huang's Santa Clara, California-based company explode into an industry behemoth, from a relatively small video game processor manufacturer. It's been a dizzying ascent for a company that only first reached a $100 billion valuation in July 2017, and overcame significant early struggles that nearly put it out of business in the mid-1990s. Huang was a 30-year-old engineer at Sun Microsystems in 1993 when he gathered with friends and future co-founders Chris Malachowsky and Curtis Priem in a booth at a Denny's diner to plot what would become Nvidia. "Frankly, I had no idea how to do it, nor did they. None of us knew how to do anything," Huang told CBS' "60 Minutes" about the company's origins in an April 2024 interview. DON'T MISS: The ultimate guide to using AI to communicate better At the time, Huang believed the co-founders could develop a graphics processing unit (GPU) that would revolutionize computer graphics for video games. The company got off to a rough start when, in 1996, Nvidia's experimental chips turned out to be "technically poor" -- jeopardizing an essential contract with gaming company Sega, Huang said in a May 2023 commencement speech at National Taiwan University. The failure forced Huang to lay off nearly half of his staff. He prevented the company from going under by convincing Sega to buy out their contract, and he used that money to fund the development of a completely new series of chips from scratch. Those new chips became the company's first hit product in 1997, selling 1 million units in just four months. Huang has discussed how the difficult experience helped him, and the company, develop enough resilience to become successful. "Greatness is not intelligence. Greatness comes from character. And character isn't formed out of smart people, it's formed out of people who suffered," Huang told students at his alma mater, Stanford University, at a March 2024 event. Today, Nvidia is a major player in the AI boom after diversifying beyond serving only the gaming industry in the 2010s. Companies including Google, Microsoft and OpenAI use Nvidia's computer chips to power complex AI models, and the AI investment boom has seen Nvidia's stock skyrocket in recent years. The company's market capitalization topping $1 trillion for the first time just two years ago, in May 2023. For his part, Huang never imagined when he launched Nvidia that his company's chips could one day help usher in a potential AI revolution. "That was luck founded by vision," he said in the "60 Minutes" interview. "We invented this capability and then one day, the researchers that were creating deep learning discovered this architecture. Because this architecture turned out to be perfect for them ... Perfect for AI." While AI excitement has spurred U.S. stocks to record levels, some analysts have warned of a potential bubble caused by ever-climbing valuations and an increasingly complex web of companies investing in each other, with Nvidia near the center of it. But unsurprisingly, Huang is bullish on AI's potential and eager for U.S. developers to be at the forefront of the industry's ascent. "We are at the dawn of the AI industrial revolution that will define the future of every industry and nation," Huang said in Nvidia's press release on Tuesday. "It is imperative that America lead the race to the future -- this is our generation's Apollo moment." Want to level up your AI skills? Sign up for Smarter by CNBC Make It's new online course, How To Use AI To Communicate Better At Work. Get specific prompts to optimize emails, memos and presentations for tone, context and audience.

Chipmaker Nvidia on track to become first $5 trillion company

Nvidia is on track to become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.80 in premarket trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. On Tuesday Nvidia CEO Jensen Huang disclosed $500 billion in chip orders. The company is also teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Multiple media reports state that President Donald Trump is likely to speak with Chinese President Xi Jinping about Nvidia's chips on Thursday.

The Building at the Center of the Economy

The AI boom is visible from orbit. Satellite photos of New Carlisle, Indiana, show greenish splotches of farmland transformed into unmistakable industrial parks in less than a year's time. There are seven rectangular data centers there, with 23 more on the way. Inside each of these buildings, endless rows of fridge-size containers of computer chips wheeze and grunt as they perform mathematical operations at an unfathomable scale. The buildings belong to Amazon and are being used by Anthropic, a leading AI firm, to train and run its models. According to one estimate, this data-center campus, far from complete, already demands more than 500 megawatts of electricity to power these calculations -- as much as hundreds of thousands of American homes. When all the data centers in New Carlisle are built, they will demand more power than two Atlantas. The amount of energy and money being poured into AI is breathtaking. Global spending on the technology is projected to hit $375 billion by the end of the year and half a trillion dollars in 2026. Three-quarters of gains in the S&P 500 since the launch of ChatGPT came from AI-related stocks; the value of every publicly traded company has, in a sense, been buoyed by an AI-driven bull market. To cement the point, Nvidia, a maker of the advanced computer chips underlying the AI boom, yesterday became the first company in history to be worth $5 trillion. Here's another way of thinking about the transformation under way: Multiplying Ford's current market cap 94 times over wouldn't quite get you to Nvidia's. Yet 20 years ago, Ford was worth nearly triple what Nvidia was. Much like how Saudi Arabia is a petrostate, the U.S. is a burgeoning AI state -- and, in particular, an Nvidia-state. The number keeps going up, which has a buoying effect on markets that is, in the short term, good. But every good earnings report further entrenches Nvidia as a precariously placed, load-bearing piece of the global economy. America appears to be, at the moment, in a sort of benevolent hostage situation. AI-related spending now contributes more to the nation's GDP growth than all consumer spending combined, and by another calculation, those AI expenditures accounted for 92 percent of GDP growth during the first half of 2025. Since the launch of ChatGPT, in late 2022, the tech industry has gone from making up 22 percent of the value in the S&P 500 to roughly one-third. Just yesterday, Meta, Microsoft, and Alphabet all reported substantial quarterly-revenue growth, and Reuters reported that OpenAI is planning to go public perhaps as soon as next year at a value of up to $1 trillion -- which would be one of the largest IPOs in history. (An OpenAI spokesperson told Reuters, "An IPO is not our focus, so we could not possibly have set a date"; OpenAI and The Atlantic have a corporate partnership.) Many people believe that growth will only continue. "We're gonna need stadiums full of electricians, heavy equipment operators, ironworkers, HVAC technicians," Dwarkesh Patel and Romeo Dean, AI-industry analysts, wrote recently. Large-scale data-center build-outs may already be reshaping America's energy systems. OpenAI has announced that it intends to build at least 30 gigawatts' worth of data centers -- more power than all of New England requires on even the hottest day -- and CEO Sam Altman has said he'd eventually like to build a gigawatt of AI infrastructure every week. Other major tech firms have similar ambitions. Listen to the AI crowd talk enough, and you'll get a sense that we may be on the cusp of an infrastructure boom. And yet, something strange is happening to the economy. Even as tech stocks have skyrocketed since 2022, the companies' share of net profits from S&P 500 companies has hardly budged. Job openings have fallen despite a roaring stock market, 22 states are in or near a recession, and despite data centers propping up the construction industry, U.S. manufacturing is in decline. It's clear that AI is both drowning out and obscuring other stories about the wobbling American economy. That's a concern. But even worse: What if AI's promise for American business proves to be a mirage? What happens then? The yawning gap between data-center expenditures and the rest of the economy has caused whispers of bubble to rise to a chorus. A growing number of financial and industry analysts have pointed out the enormous divergence between the historic investments in AI and the tech's relatively modest revenues. For instance, according to The Information, OpenAI likely made $4 billion last year but lost $5 billion (making the idea of a $1 trillion IPO valuation that much more staggering). From July through September, Microsoft's investments in OpenAI resulted in losses totaling more than $3 billion. For that same time period, Meta reported rapidly growing costs due to its AI investments, spooking investors and sending its stock down 9 percent. Much is in flux. Chatbots and AI chips are getting more efficient almost by the day, while the business case for deploying generative-AI tools remains shaky. A recent report from McKinsey found that nearly 80 percent of companies using AI discovered that the technology had no significant impact on their bottom line. Meanwhile, nobody can say, beyond a few years, just how many more data centers Silicon Valley will need. There are researchers who believe there may already be enough electricity and computing power to meet generative AI's requirements for years to come. The economic nightmare scenario is that the unprecedented spending on AI doesn't yield a profit anytime soon, if ever, and data centers sit at the center of those fears. Such a collapse has come for infrastructure booms past: Rapid construction of canals, railroads, and the fiber-optic cables laid during the dot-com bubble all created frenzies of hype, investment, and financial speculation that crashed markets. Of course, all of these build-outs did transform the world; generative AI, bubble or not, may do the same. This is why OpenAI, Google, Microsoft, Amazon, and Meta are willing to spend as much as possible, as rapidly as possible, to eke out the tiniest advantage. Even if a bubble pops, there will be winners -- each company would like to be the first to build a superintelligent machine. For now, many of these tech companies have cash to burn from their other ventures: Alphabet and Microsoft both made more than $100 billion in profit over the previous fiscal year, while Meta and Amazon both made more than $50 billion. But at some point in the near future, data-center spending will likely outpace even these enormous cash flows, reducing Big Tech's liquidity and worrying investors. And so, as the AI arms race continues to escalate, the companies are beginning to raise outside money -- in other words, take on debt. Here is where the bubble dynamics get complicated. Tech firms don't want to formally take on debt -- that is, directly ask investors for loans -- because debt looks bad on their balance sheets and could reduce shareholder returns. To get around this, some are partnering with private-equity titans to do some sophisticated financial engineering, Paul Kedrosky, an investor and a financial consultant, told us. These private-equity firms put up or raise the money to build a data center, which a tech company will repay through rent. Data-center leases from, say, Meta can then be repackaged into a financial instrument that people can buy and sell -- a bond, in essence. Meta recently did just this: Blue Owl Capital raised money for a massive Meta data center in Louisiana by, in essence, issuing bonds backed by Meta's rent. And multiple data-center leases can be combined into a security and sorted into what are called "tranches" based on their risk of default. Data centers represent an $800 billion market for private-equity firms through 2028 alone. (Meta has said of its arrangement with Blue Owl that the "innovative partnership was designed to support the speed and flexibility required for Meta's data center projects.") In this way, the data-center financing ends up being a real-estate deal as much as an AI deal. If this sounds complicated, it's supposed to: The complexity, investment structure, and repackaging make exactly what is going on hard to parse. And if the dynamics also sound familiar, it's because not two decades ago, the Great Recession was precipitated by banks packaging risky mortgages into tranches of securities that were falsely marketed as high-quality. By 2008, the house of cards had collapsed. Data-center build-outs aren't the same as subprime mortgages. Still, there is plenty of precarity baked into these investments. Data centers deteriorate rapidly, unlike the more durable infrastructure of canals, railroads, or even fiber-optic cables. Many of the chips inside these buildings become obsolete within a few years, when Nvidia and its competitors release the next wave of bleeding-edge AI hardware. Meanwhile, the returns on scaling up chatbots are, at present, diminishing. The improvements made by each new AI model are becoming smaller and smaller, making the idea that Silicon Valley can spend its way to superintelligence more tenuous by the day. The people who are paying attention to this cycle are getting anxious. On a scale from one to 10, the AI-bubble concern is: people posting memes of Christian Bale's character from The Big Short, squinting in disbelief at his computer monitor. If tech stocks fall because of AI companies failing to deliver on their promises, the highly leveraged hedge funds that are invested in these companies could be forced into fire sales. This could create a vicious cycle, causing the financial damage to spread to pension funds, mutual funds, insurance companies, and everyday investors. As capital flees the market, non-tech stocks will also plummet: bad news for anyone who thought to play it safe and invest in, for instance, real estate. If the damage were to knock down private-equity firms (which are invested in these data centers) themselves -- which manage trillions and trillions of dollars in assets and constitute what is basically a global shadow-banking system -- that could produce another major crash. For now, money is still pouring into the AI industry. But there's also something circular about these investments. To wit: OpenAI has agreed to pay $300 billion to Oracle for new computing capacity, Oracle is paying Nvidia tens of billions of dollars for chips to install in one of OpenAI's data centers, and Nvidia has agreed to invest up to $100 billion in OpenAI as it deploys Nvidia chips. Attempts to illustrate these circular investments have produced a series of byzantine charts that one software engineer referred to on X as "the technocapital hyperobject at the end of time." The consensus seems to be that although this is legal, it likely cannot go on forever. Maybe it will all work out. Three years ago, the generative-AI industry made functionally no revenue; today, it produces tens of billions of dollars annually, a rate of growth that, eventually, could catch up with all of this spending. Generative-AI tools are currently used by hundreds of millions of people, and it's hard to imagine that simply ceasing overnight. Perhaps OpenAI or Anthropic will pull off superintelligence, allowing them to, in the words of the Bloomberg columnist Matt Levine, "create God and then ask it for money." Data centers take time to approve and build; power plants and transmission lines take perhaps even more. Labor is limited, supply chains hit snags, investment waxes and wanes -- meaning that even if these data centers are built at the tremendous scale desired by Altman and his competitors, construction and energy constraints may keep the boom from growing too irresponsibly. In any case, as we approach the end of 2025, data centers have become a peculiar cultural object. Their immense scale is a physical reminder of the economic dominance of Silicon Valley companies and their seemingly unchecked ambition. The uneasiness they inspire economically is rooted in memories of 2008 but also of the tech industry's own financial chicanery, specifically the 2022 crypto crash, which was facilitated by a circular-payment scheme of its own. (FTX, a crypto exchange, and Alameda Research, a hedge fund, both co-founded by Sam Bankman-Fried, were found to be propping each other up: Alameda bought FTX's bespoke cryptocurrency, and FTX lent Alameda money from its customers' accounts.) And so, in some way, the externalities of the data-center boom, be they environmental or economic, are tied up in fears of what happens not when these tech companies fail, but when they succeed. Boom and bust can feel like two sides of the same coin: Consider also that if AI companies deliver on their massive investments, it would likely mean producing a technology so capable and revolutionary that it wipes out countless jobs and sends an unprecedented shock wave through the global economy before humans have time to adapt. (Perhaps we will be unable to adapt at all.) If they fail, there will likely be unprecedented financial turmoil as well. The biggest lesson of the past two decades of Silicon Valley is that Meta, Amazon, and Google -- and even the newer AI labs such as OpenAI -- have remade our world and have become unfathomably rich for it, all while being mostly oblivious or uninterested in the fallout. They have chased growth and scale at all costs, and largely, they've won. The data-center build-out is the ultimate culmination of that chase: the pursuit of scale for scale itself. In all scenarios, the outcome seems only to be real, painful disruption for the rest of us.

Nvidia Is Now Worth $5 Trillion as It Consolidates Power in A.I. Boom

As Jensen Huang, the chief executive of the chip making giant Nvidia, traveled to Asia to meet with President Trump on Wednesday, his company's value topped $5 trillion. It was a show of wealth that would have been unthinkable a few years ago. But that was before the ChatGPT chatbot ignited an artificial intelligence boom that is remaking the global economy. It was before other tech titans began spending hundreds of billions of dollars on construction projects on almost every continent. And it was before Nvidia's computer chips, the most essential and expensive component in almost every A.I. scheme, became a linchpin of the Trump administration's foreign policy. Nvidia's milestone, the first publicly traded company to top $5 trillion in market value, is indicative not only of the astonishing levels of wealth consolidating among a handful of Silicon Valley companies but also the strategic importance of this company, which added $1 trillion in market value in just the past four months. Nvidia has become a driving force behind the U.S. economy. Spending on data centers, which are filled with the company's chips, accounted for 92 percent of the country's gross domestic product growth in the first half of the year, according to Jason Furman, a professor of economic policy at Harvard. Without it, the economy would have grown 0.1 percent. But Nvidia's stunning growth also comes with a warning to investors, from the biggest banks on Wall Street to small-time traders on Main Street, that the stock market is becoming more and more dependent on a group of technology companies that are churning out billions in profits and splurging to develop an unproven technology that needs to deliver enormous returns. "There's unbridled optimism about where this technology is going to go," said Gene Munster, a managing partner at Deepwater Asset Management, which invests in emerging technology companies. "But the question is: Will it deliver? The usefulness of A.I. is still limited today." There have been periods of market concentration before but none as stark as the one created by A.I. Nvidia alone makes up more than 8 percent of the S&P 500, according to Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices. Apple and Microsoft now top $4 trillion. Those companies combined with Meta, Amazon, Alphabet and Tesla make up more than a third of the entire index. Nvidia's A.I. chips, which account for more than 90 percent of the market, are highly coveted by businesses and governments around the world. Mr. Trump has put them at the forefront of America's trade strategy, striking deals to sell A.I. chips to the United Arab Emirates, Saudi Arabia, South Korea and Japan. As the president traveled across Asia this week, he signaled that Nvidia would be a factor in U.S.-China trade talks. Sales of its chips to China were suspended over the summer as tensions flared between those countries. The nations have been wrestling with how to deal with a powerful technology that can be used to develop advanced weaponry and drive economic opportunity. Mr. Huang, 62, has spent much of the year bouncing between Washington and Beijing trying to find a solution. In the process, he has become a valuable conduit between China's top leader, Xi Jinping, and Mr. Trump, who is eager to strike a trade deal between the countries, said two people familiar with the confidential trade talks who spoke on the condition of anonymity. "Nvidia works with governments across the world," said John Rizzo, a company spokesman. "We do not engage in geopolitical or diplomatic discussions between governments." The White House didn't immediately provide comment. Nvidia has further endeared itself to Mr. Trump by shifting some of its manufacturing to the United States. This month, the company started making its latest A.I. chip, known as Blackwell, at Taiwan Semiconductor Manufacturing Company's plant in Arizona. Last week, Mr. Huang delivered Mr. Trump a signed version of the chip in a red case during a private meeting at the Oval Office. Mr. Trump praised the product in Tokyo this week and called Mr. Huang "brilliant." Speaking at a news conference after Nvidia's first major conference in Washington on Tuesday, Mr. Huang said that the United States and China would benefit from allowing Nvidia to sell its technology in China. The United States would see its technology providers become the foundation for A.I. and American A.I. companies in the world's most populous nation. China would receive more-efficient chips that make their A.I. companies more productive. He said the question for China was: "Do they want to be open market or selectively open market? Our job is to wait until they want us to be there." During a media appearance on Wednesday ahead of the highly anticipated U.S.-China trade talks, Mr. Trump said that he and Mr. Xi would speak about Nvidia's Blackwell chip, which he called "super duper." The prospects of Nvidia's return to China pushed its market value above $5 trillion on Wednesday. The company could make more than $50 billion in sales in China over the next year, analysts estimate. Nvidia has agreed to pay the U.S. government 15 percent of the money it makes from selling A.I. chips to China, as a result of an agreement Mr. Huang and Mr. Trump reached in July. Mr. Huang said Tuesday that the Trump administration was working on a new regulation to make those payments possible. Additional sales to China would be the latest good news for Nvidia. Speaking onstage at Nvidia's event on Tuesday, Mr. Huang said that A.I. was as essential to the future as electricity and the internet. "Every company will use it," said Mr. Huang, who spoke to several thousand people in his trademark black leather jacket. "Every nation will build it." Mr. Huang highlighted how companies like Microsoft and the software company Oracle are pouring hundreds of billions of dollars into building data centers for A.I. To a room full of a thousand people, he showed a chart projecting that the companies' spending would top $549 billion this year, more than double what they spent in 2023, according to Morgan Stanley. He said that Nvidia had orders to ship 20 million of its newest chips through the end of next year, up from four million of its previous generation shipped between 2023 to 2025. The orders are worth about $500 billion in sales, far more than analysts had previously estimated. But Mr. Huang's speech also stoked skepticism about whether the A.I. spending boom was justified. Some investors have questioned whether A.I. will increase productivity and sales. Mr. Huang offered few concrete examples of that, pointing primarily to how software engineers at Nvidia use it to automate computer programming. "We're still really, really early in this process, and there have been enough little examples from early artificial intelligence businesses that have made people say, 'Wow,'" said Bob O'Donnell, president of TECHnalysis Research, a technology research firm. "But converting those examples that have shown promise into something that changes how people work is taking much longer than people have expected." Mr. Huang put Nvidia in position to lead the A.I. transformation by betting that his company's chips -- known as graphics processing units, or GPUs -- would be essential to building artificial intelligence. Before then they were popular for powering video game computers and the machines for creating cryptocurrencies. He plowed money into a custom programming language to control those chips that became critical to building A.I. systems. The combination of the chips and software have allowed Nvidia to dominate what has become the next wave in computing, much as Intel and Microsoft controlled the PC era and Apple the shift to mobile devices like the iPhone. Nvidia has seen a sevenfold increase in sales since OpenAI's ChatGPT set off an A.I. arms race in late 2023. It expects to post more than $26 billion in profit for the current quarter, which would eclipse Wall Street projections for other tech heavyweights like Apple and Meta. The speed of Nvidia's rise left longtime Wall Street watchers at a loss for words. "It's incredible," David Faber, one of the hosts of the CNBC show "Squawk on the Street," said on Wednesday morning. "Did you ever think in our lifetime we'd see a $5 trillion company?" Joe Rennison contributed reporting in New York.

Nvidia becomes the first $5 trillion public company in history

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Update, October 29: Nvidia hits $5 trillion market cap just three months after topping $4 trillion Nvidia has become the world's first publicly traded company to surpass a $5 trillion valuation, climbing to $5.13 trillion in early morning trading, just three months after crossing the $4 trillion mark. The record-setting jump follows CEO Jensen Huang's disclosure at this week's GTC keynote that Nvidia has secured more than $500 billion in AI chip orders through 2026. While this provides an unprecedented level of revenue visibility for a technology firm, it's also called into question the dense network of deals between companies that depend on Nvidia, triggering criticism of so called circular investment, a classic warning sign of a market bubble. The company's stock has risen more than 50% in 2025 and over 85% in the past six months, fueled by global investment in AI infrastructure where Nvidia is a sole major player. Nvidia's Blackwell GPUs remain the backbone of hyperscale data center buildouts, with the company controlling an estimated 90% of the market for high-performance AI chips. Nvidia also announced expanded domestic manufacturing in Arizona and new partnerships with Nokia and Oracle to support telecommunications and federal supercomputing projects. Apple and Microsoft each rejoined the $4 trillion club this week, but Nvidia's latest surge has set a new benchmark for market leadership in the AI era. Update, July 9: Nvidia becomes the world's first $4 trillion public company, surpassing Apple's record Nvidia has become the first publicly traded company to reach a $4 trillion market valuation, underscoring its position at the center of the generative AI market. Its chips are used in the data centers that support AI models and cloud services from major firms like Microsoft, Amazon, and Google. The company's stock has risen about 20% this year, driven by sustained demand for AI infrastructure. This development also marks a shift in market leadership. Nvidia surpassed both Apple and Microsoft, which had previously alternated as the most valuable companies. Apple, which started the year near a $3.9 trillion valuation, has declined amid broader market and policy concerns. Meanwhile, Nvidia reported $44.1 billion in revenue for the quarter ending in April, a 69% increase from the prior year, reflecting continued growth in AI-related demand. The original story from July 4th follows below: Nvidia came within striking distance of setting a new record for the most valuable company in history on Thursday, as its market capitalization soared to $3.92 trillion during intraday trading, just shy of the $4 trillion mark. The chipmaker's rapid ascent, fueled by relentless demand for its advanced AI chips, briefly pushed it past Apple's previous record closing value of $3.915 trillion set in late 2024. By the end of the trading session, Nvidia's value settled at $3.89 trillion, slightly below the all-time high but still underscoring its extraordinary run. "When the first company crossed a trillion dollars, it was amazing. And now you're talking four trillion, which is just incredible. It tells you that there's this huge rush with AI spending and everybody's chasing it right now," Joe Saluzzi, co-manager of trading at Themis Trading, told Reuters. The surge in Nvidia's stock reflects a broader wave of optimism on Wall Street about the future of AI. The company's latest chips have become essential for training and running the largest and most sophisticated AI models, fueling a race among technology giants to build powerful data centers and dominate the next era of computing. Microsoft, Amazon, Meta, Alphabet, and Tesla are all competing to expand their AI infrastructure, and Nvidia's specialized hardware sits at the heart of this transformation. According to LSEG data, Nvidia's current valuation now exceeds the combined market capitalization of all publicly listed companies in Canada and Mexico, and even surpasses the total value of all publicly traded firms in the United Kingdom. Four years ago, the company was valued at $500 billion and was largely known for its graphics technology used in video games. Since then, its market capitalization has grown nearly eightfold, propelled by the explosive growth in AI applications and the company's ability to deliver the high-performance chips that power them. The company's financial performance has been equally impressive. In the most recent quarter, Nvidia reported $44.1 billion in revenue, a 69 percent increase from the previous year, with data center sales alone contributing $39.1 billion. This puts Nvidia on track to approach $170 billion in annual revenue for fiscal 2026, up from $130.5 billion in 2025. Analysts expect the company's next-gen Blackwell Ultra GPUs to further accelerate growth, with Wall Street anticipating that Nvidia could soon reach, and potentially surpass, the $4 trillion market cap milestone. Nvidia's rise has also reshaped the broader stock market. The company now represents a significant portion of the S&P 500 index, and its performance has left many investors, including those saving for retirement through index funds, increasingly exposed to the fortunes of the AI sector. Microsoft, currently valued at $3.7 trillion, and Apple, at $3.19 trillion, round out the top three most valuable companies. But Nvidia's momentum has set a new benchmark for what is possible in the technology industry. Despite its dominance, Nvidia faces challenges, including ongoing trade restrictions that limit the sale of its most advanced chips to China, as well as rising competition from rivals developing custom AI hardware. However, the company's innovation pipeline remains robust, with expansion into new markets such as autonomous vehicles and physical AI systems, signaling that its influence in the tech world is likely to persist.

Nvidia Becomes First $5 Trillion Company as AI Demand Surges

Nvidia today became the first public company to reach a $5 trillion market capitalization, hitting the milestone 3.5 months after surpassing $4 trillion. Over the past week, Nvidia's shares have climbed 14.5 percent due to demand for its GPUs and the possibility that it might be able to sell its most advanced chips in China. As of now, the U.S. prevents Nvidia from selling its Blackwell AI chips to China, and China has also restricted Chinese companies from importing some Nvidia chips because of national security concerns. Trump said that he would discuss Nvidia's "super duper chip" with Chinese president Xi Jinping on October 30, leading to hopes that the situation might change. Nvidia's AI chips are key for developing and training large language AI models, and almost every major tech company is working on some kind of AI product. Apple, for example, is building out AI infrastructure to power Apple Intelligence and other future AI capabilities. Apple is using Apple Silicon chips, but it has also reportedly invested in Nvidia server technology. Nvidia's growth has outpaced Apple, Microsoft, and other tech companies, but Apple reached a milestone of its own yesterday. Just ahead of Thursday's earnings call, Apple briefly reached a $4 trillion valuation. Apple's stock price has dropped slightly since then, but the company is close to hitting that target again. Apple is pumping out its own artificial intelligence servers, and the first units started shipping out this month. It is unlikely that Apple will compete with Nvidia in the server market because its servers are designed for internal use.

'A lot of this is speculative': faith and fear mix amid $3tn global datacentre boom

Many believe planned investment will bring prosperity, while others worry its debt-fuelled exuberance will backfire The global investment spree in artificial intelligence is producing some remarkable numbers and a projected $3tn (£2.3tn) spend on datacentres is one of them. These vast warehouses are the central nervous system of AI tools such as OpenAI's ChatGPT and Google's Veo 3, underpinning the training and operation of a technology into which investors have poured vast sums of money. Despite concerns that the AI boom could be a bubble waiting to burst, there are few signs of it at the moment. The Silicon Valley AI chipmaker Nvidia last week became the world's first $5tn company and Microsoft and Apple's valuations hit $4tn, the latter for the first time. A restructuring at OpenAI has valued the company at $500bn and a stake owned by Microsoft at more than $100bn. This could lead to a $1tn flotation as early as next year. On top of that, Google's owner Alphabet has reported revenues of $100bn in a single quarter for the first time, helped by growing demand for its AI infrastructure, while Apple and Amazon have also just reported strong results. It is not just the financial world, politicians and tech companies who have faith in AI: it is also the communities hosting the infrastructure behind it. In the 19th century, demand for coal and steel from the Industrial Revolution shaped the destiny of Newport. Now the Welsh city is hoping for a new chapter of growth from the latest transformation of the global economy. On the outskirts of Newport, on the site of a former radiator factory, Microsoft is building a datacentre that will help meet what the tech industry hopes will be exponential demand for AI. Standing on a concrete floor that will soon host thousands of humming servers, the Labour leader of Newport city council, Dimitri Batrouni, says the Imperial Park datacentre is a chance to tap into the economy of the future. "With cities like mine, what do you do? Do you worry about the past and try to bring steel back with 10,000 jobs - it's unlikely. Or do you embrace the future?" he says. But despite the market's current positivity about AI, questions remain about the sustainability of the tech industry's outlay. Four of the biggest players in AI - Amazon, Facebook parent Meta, Google and Microsoft - have increased spending on AI. Over the next two years they are expected to spend more than $750bn on AI-related capital expenditure, meaning non-staff items such as datacentres and the chips and servers inside them. It is a spending spree that Manning & Napier, a US investment company, describes as "nothing short of incredible". The Newport site alone will cost hundreds of millions of dollars. Last week, the California-based Equinix said it was planning to invest £4bn on a centre in Hertfordshire. In March, the chair of the Chinese e-commerce group Alibaba, Joe Tsai, warned he was seeing signs of excess in the datacentre market. "I start to see the beginning of some kind of bubble," he said, pointing to projects raising funds for construction without commitments from potential customers. There are 11,000 datacentres globally already, up 500% over the past 20 years. And more are coming. How this will be funded is a source of concern. Analysts at Morgan Stanley, the US investment bank, estimate that global spending on datacentres will reach nearly $3tn between now and 2028, with $1.4tn covered by the cashflow of the big US tech companies - also known as "hyperscalers". That means $1.5tn needs to be covered from other sources such as private credit - a growing part of the shadow banking sector that is raising the alarm at the Bank of England and elsewhere. Morgan Stanley believes private credit could plug more than half of the funding gap. Mark Zuckerberg's Meta has tapped the private credit market for $29bn of financing for a datacentre expansion in Louisiana. Gil Luria, the head of technology research at the US investment firm DA Davidson, says the hyperscaler investment is the "healthy" part of the boom - the other part less so, which he describes as "speculative assets without their own customers". The debt they are using, he says, could trigger ramifications beyond the tech industry if it goes sour. "The providers of this debt are so eager to deploy capital into AI, that they may not be properly assessing the risks of investing in a new unproven category supported by very quickly depreciating assets," he says. "While we are at the early stages of this influx of debt capital, if it does rise to the level of hundreds of billions of dollars it could end up representing structural risk to the overall global economy." Harris Kupperman, a hedge fund founder, said in a blogpost in August that datacentres will depreciate twice as fast as the revenue they generate. Underpinning this expenditure are some lofty revenue expectations from Morgan Stanley, with revenues from generative AI - chatbots, AI agents, image generators - expected to grow from $45bn last year to $1tn by 2028. Tech companies are relying on businesses, the public sector and individuals to produce enough demand for AI - and to pay for it - to justify those revenue expectations. OpenAI's ChatGPT, the emblematic product of the AI boom, now has 800 million active weekly users, which is a boon for the optimists. But doubts have been raised over business takeup so far. For instance, investor faith in the AI boom was rattled in August when the Massachusetts Institute of Technology published research showing that 95% of organisations are getting zero return from their investments in generative AI pilots. The Uptime Institute, which inspects and rates datacentres, says many projects will not be built - an indicator that some are part of the hype machine and won't get off the ground. "An important point to understand is that a lot of this speculative," says Andy Lawrence, the executive director of research at Uptime. "Many of the datacentres, often announced with a fanfare, either will never be built, or will be built and populated only partially, or gradually, over a decade." He adds that many of the datacentres announced in this multitrillion-dollar programme will be "either specifically intended to support AI workloads, or will mainly do so". Microsoft points out that its Newport datacentre will not be used solely for AI. As well as being the central nervous systems for AI systems such as ChatGPT and Microsoft's Copilot, datacentres do all the day-to-day IT work we take for granted - as providers of "cloud" services where companies rent out servers instead of buying their own: handling email traffic, storing company files and hosting Zoom calls. "We have a lot of ways to use this infrastructure. It becomes very much a general purpose technology," says Alistair Speirs, a general manager at Microsoft's cloud business. Elsewhere, though, are massive projects that are all-in on AI. The Stargate venture in the US is a $500bn joint venture between OpenAI, Oracle and SoftBank that aims to build a network of AI datacentres across the US. A UK version of Stargate is also coming to North Tyneside in north-east England. Microsoft is building the word's most powerful AI datacentre in Fairview, Wisconsin, and is backing an AI-dedicated site in Loughton, Essex, while Elon Musk's xAI has built the "colossus" project in Memphis, Tennessee. Work on an estimated 10GW of new datacentre capacity around the world - representing roughly a third of the UK's power demand - is expected to start this year, according to the property group JLL. However, this is the aggregate maximum capacity and datacentres typically operate at about 60%. A further 7GW will reach completion this year, according to JLL. Currently, global datacentre capacity is 59GW, so the pace of expansion is rapid and Goldman Sachs expects it to double by the end of 2030. This carries a further infrastructure cost of its own, according to Goldman, with $720bn of grid spending needed to meet that energy demand. At the Newport site, a native of the city, the construction safety specialist Mike O'Connell, has returned as a consultant. After a career that has spanned oil rigs, offshore wind and datacentres around the world, he is back at his birthplace - now a tech hub that hosts datacentres and semiconductor companies. "I am looking to stay in the local community," he says. O'Connell's teenage grandson is starting work at the Newport site under an electrical apprenticeship. There is a belief, and hope, that datacentres such as this represent a generational employment opportunity for the area. Investors and tech companies, having pledged trillions of dollars, are counting on a long-term return, too.

AI boom powers new-school Nvidia and old-school Caterpillar to new heights

The big picture: Nvidia passed $5 trillion in value Wednesday, while Caterpillar's stock soared. The burgeoning AI economy is fueling insatiable demand for the modern form of picks and shovels -- the types of AI chips that Nvidia designs -- and for the actual picks and shovels needed to build that new capacity. * Nvidia's stock rose 3% Wednesday, propelling it to become the first company ever to pass $5 trillion in market cap, as investors welcomed CEO Jensen Huang's revelation that it has booked $500 billion in sales for its two newest chips through 2026. * At the same time, Caterpillar reported surging orders for construction equipment needed to build AI data centers. Nvidia added another $1 trillion in value in just over 100 days, illustrating the feverish nature of the global frenzy for AI. * Not only do Nvidia's chips power that historical shift -- the company, as an investor, increasingly has a piece of several other major players in the space, too, Axios' Ben Berkowitz reports. Stunning stat: At $5 trillion, Nvidia is now worth about $1 trillion more than the next-closest company, Microsoft. * Or put another way: Nvidia is worth roughly double JPMorgan Chase, Walmart, Exxon Mobil, and Johnson & Johnson -- combined. * "They've just defied gravity," Melissa Otto, head of research at S&P Global Visible Alpha, tells Axios. Zoom in: The chips that Nvidia sells are powering the data centers that Caterpillar's equipment is helping to build. * Caterpillar CEO Joe Creed said on an earnings call today that sales of equipment in the company's power generation segment soared 33%, "primarily due to demand for reciprocating engines for data center applications." * The manufacturing and construction boom stemming from the AI surge amounts to a "massive reindustrialization of the U.S.," Otto says. What we're watching: Are Nvidia shares becoming overinflated? * Huang himself dismissed chatter of an AI bubble in an appearance Tuesday at the Nvidia GTC event in Washington, D.C. * S&P's Otto says the company's valuation is not out of whack when considering that demand still exceeds supply of the company's chips: "That's not a bubble. That's just a growing business," she says. Yes, but: Huang said Tuesday that the AI boom could be hampered by a "severe shortage of labor," citing the need for mechanical engineers, electrical engineers, plumbers, construction workers and other skilled laborers.

Nvidia Just Became the World's First $5 Trillion Company

Not even four months after American technology company Nvidia rode the AI surge to become the world's first $4 trillion company, it has become the first ever to cross the $5 trillion threshold. As of early this morning, Nvidia's share price reached over $212, which put its total market cap well over $5 trillion. At the time of writing, the company's stock price has decreased slightly to just under $207, keeping its market cap at $5.02 trillion. The company's 52-week high stock price is $212.19, which Bloomberg reports was achieved around 11 AM ET today. This is just the latest chapter in Nvidia's meteoric rise. While long a successful technology company and chipmaker, Nvidia has significantly benefited from the ongoing AI arms race. The company's stock price has increased from around $12 to its high watermark of $212.19 over the past five years, with the largest total value gains occurring since the start of 2024, when Nvidia's stock was around $50. Since 2022, Nvidia's stock has gone up by over 1,300 percent. Nvidia went from dramatically trailing the valuations of monolithic presences in the tech space like Alphabet, Microsoft, and Apple to beating them all across $4 trillion and now $5 trillion valuation thresholds. The landmark accomplishment this morning is hot on the heels of Nvidia's announcement that it had bought $1 billion in Nokia shares to help accelerate Nvidia's AI-RAN innovations and help the company transition from 5G to 6G networking infrastructure. Obviously, buying $1 billion in shares of a company like Nokia instantly increases Nvidia's own value by a commensurate amount, but this is nonetheless a monumental moment in the U.S. corporate landscape. "Nvidia has become the most-important stock in a bull market that's been driven by optimism for AI to revolutionize the global economy," Bloomberg reports. The publication adds that Nvidia's stock accounts for about 20% of the S&P 500 Index's 17% gains so far this year. The market is clearly putting significant faith in artificial intelligence's value and its potential transformational power. However, it remains unclear whether AI will primarily create positive cultural and societal change and who will benefit the most from it. Perhaps as importantly, there is justifiable concern about who will be harmed by its continued development. There remains significant skepticism surrounding AI and ongoing worry that it is just another, bigger dot-com-esque bubble waiting to burst.

Nvidia is officially the world's first $5 trillion company. CEO Jensen Huang says it's on track for 'half a trillion dollars' in revenue | Fortune

Nvidia made history Wednesday, becoming the world's first company to reach a $5 trillion market capitalization as shares surged more than 3% in early trading. The milestone cements the chipmaker's position as the most valuable company globally, pulling ahead of Microsoft and Apple, which are both valued at approximately $4 trillion. The surge followed remarks from CEO Jensen Huang at the company's GTC developer conference in Washington on Tuesday, where he disclosed Nvidia has secured more than $500 billion in orders for its AI chips through the end of 2026. The announcement represents what Huang described as unprecedented visibility into future revenue for a technology company. "I think we are probably the first technology company in history to have visibility into half a trillion dollars [in revenue]," Huang said, referring to orders for the company's current Blackwell generation and upcoming Rubin chips scheduled to launch next year. The potential for expanded access to China's market added momentum to Wednesday's gains. President Donald Trump said aboard Air Force One he planned to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping during their meeting Thursday in Busan, South Korea. Trump praised the Blackwell processor as "super duper" and said it is "probably 10 years ahead of any other chip." The discussion carries significant implications for Nvidia, which has been effectively locked out of China -- previously one of its largest markets -- due to U.S. export controls and Chinese government restrictions. Huang confirmed earlier in October the company's market share in China had fallen from 95% to zero. The loss has cost Nvidia billions in revenue, with the company reporting only $2.8 billion from China in its most recent quarter, down from $15.5 billion in the prior period. Nvidia had been operating under a proposed arrangement in which it would share 15% of revenue from sales of its H20 chip -- a less powerful processor designed to comply with U.S. export restrictions -- with the U.S. government in exchange for export licenses. However, the company said in August the agreement had not been formalized, and no H20 chips have been shipped to China under the framework. During Tuesday's conference, Huang also announced Nvidia is manufacturing its Blackwell GPUs in full production at a facility in Arizona, a move he attributed to Trump's push to bring manufacturing back to the U.S. The company revealed it has shipped 6 million Blackwell chips over the past four quarters and expects to deliver an additional 14 million units over the next five quarters. Nvidia unveiled partnerships with Nokia, investing $1 billion to develop telecommunications equipment incorporating its chips for 5G and 6G networks. The company also announced plans to collaborate with Oracle on building seven supercomputers for the U.S. Department of Energy, with the largest system featuring 100,000 Blackwell AI chips. Huang emphasized capital spending by major cloud computing companies -- Amazon, Meta, Google, Microsoft, Oracle, and CoreWeave -- is projected to reach $632 billion by 2027. Morgan Stanley analysts estimated total hyperscaler capital expenditures would grow 24% next year to nearly $550 billion, while Citi analysts raised their forecast to $490 billion for 2026, up from an earlier estimate of $420 billion. Nvidia reached the $5 trillion threshold just three months after becoming the first company to hit $4 trillion in July. The chipmaker's ascent has been swift: It crossed $1 trillion in June 2023, $2 trillion in February 2024, and $3 trillion in June 2024. The company was valued at approximately $400 billion before the debut of OpenAI's ChatGPT in late 2022. The stock has risen more than 50% in 2025 alone, adding more than $400 billion in market capitalization across just two trading days. Nvidia's shares closed above $200 on Tuesday for the first time before climbing further Wednesday morning. Nvidia's dominance stems from its graphics processing units, which are essential for training and running large language models used in artificial intelligence. The company controls an estimated 90% market share of AI chips used to build server farms that power the AI systems of Microsoft, Meta, Amazon, OpenAI, and other major technology companies. Apple and Microsoft joined Nvidia in the $4 trillion club this week. Apple reached the milestone Tuesday after strong demand for its iPhone 17 models, while Microsoft's valuation also crossed $4 trillion following news about its stake in a restructured OpenAI.

AI chipmaker Nvidia is the first $5 trillion company

Nvidia has become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.86 in early morning trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund. Nvidia CEO Jensen Huang has downplayed concerns of a bubble bursting, saying that the generative AI chatbots that were merely "interesting" when they first took hold a few years ago are now becoming so useful that they will be profitable. Huang was heading to South Korea this week as leaders from major Pacific Rim economies, including the United States, China and Japan, are gathering for the annual Asia-Pacific Economic Cooperation summit that has long championed free trade but is now confronting sweeping U.S. tariffs on technology and other products. The multilateral gathering in Gyeongju is expected to be overshadowed by a sideline event -- a face-to-face meeting on Thursday between Trump and Chinese leader Xi Jinping -- as their intensifying trade war leaves the South Korean hosts in a difficult balancing act. On Tuesday Nvidia CEO Jensen Huang disclosed $500 billion in chip orders. The company also announced a partnership with Uber on robotaxis and a $1 billion investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. President Donald Trump said on Air Force One that he will speak with Chinese President Xi Jinping about Nvidia's chips on Thursday on the sidelines of the APEC event that Huang is also attending.

AI chip giant Nvidia becomes world's first $5 trillion company

New York (AFP) - AI chip juggernaut Nvidia became the world's first $5 trillion company on Wednesday, as investors remain confident that artificial intelligence will deliver a new wave of innovation and growth. The California-based tech giant saw its share price rise by 4.91 percent to $210.90 at the open of trading on Wall Street, pushing Nvidia's market capitalization past the never-before-seen threshold. By way of comparison, the level was greater than the GDP of France or Germany or higher than that of Tesla, Meta (Facebook), and Netflix combined. Microsoft and Apple, the two other largest global market capitalizations, only just exceed $4 trillion in valuation each. The surge in Nvidia's share price follows continued strong sales, a flurry of new deals -- including a partnership with Europe's Nokia announced on Tuesday -- as well as expectations that the company may soon regain access to China. The company is "largely ahead of any competitor who finds it hard to catch up in the world that Nvidia lives in," Art Hogan of B. Riley Wealth Management told AFP. "While it's almost unfathomable to think about a company reaching this milestone, it comes from a company with so many operational efficiencies that seems to announce massive deals on a daily or weekly basis." Nvidia CEO Jensen Huang is expected in South Korea this week, where he will attend the sidelines of the APEC summit at which US President Donald Trump will meet his Chinese counterpart Xi Jinping, with issues related to AI development expected to be discussed. Nvidia chips are currently not sold in China due to a combination of Chinese government bans, national security concerns, and ongoing trade tensions between the United States and China. The Trump administration favors a more nuanced approach to selling AI chips to Beijing, but faces deep skepticism from China hawks across the US political spectrum who favor tougher bans on AI technology. Nvidia has announced a series of partnerships in recent weeks, including an intention to invest up to $100 billion in ChatGPT-maker OpenAI over the coming years. It also said it would invest $5 billion in struggling chip rival Intel, in response to the Trump administration's desire to bring back more manufacturing of semiconductors to the United States. 'Better, not worse' Nvidia produces the advanced graphics processing units (GPUs) that power most generative AI systems, including those behind ChatGPT and other large language models. Although it was not the first to develop GPUs, the California-based group made them its specialty in the late 1990s, quickly pivoting from video games to the then-emerging field of cloud computing, and thus has unique experience in the area. The eyewatering valuations linked to artificial intelligence also include OpenAI becoming the world's most valuable private company, currently valued at $500 billion. This has sparked talk that the AI frenzy may have entered bubble territory, reminiscent of the 1990s internet investment boom that saw a major reckoning in 2000, when high-flying companies saw their share prices collapse suddenly. Analyst Sam Stovall of CFRA, a research firm, said Nvidia's expected growth was still very strong and that investors should expect news surrounding the company "will only get better, not worse." Still, "valuations are elevated... and could therefore be vulnerable to any upsetting news," he added.

Nvidia becomes the first company worth $5 trillion, powered by the AI frenzy

Nvidia headquarters in Santa Clara, Calif.Justin Sullivan / Getty Images file The artificial intelligence giant Nvidia on Wednesday notched yet another historic milestone, becoming the first company to be worth $5 trillion. The value of Nvidia alone is now worth more than the GDP of every country on earth, except for the United States and China, according to World Bank data. Three months ago, the company was worth $4 trillion and a little over two years ago, it was worth $1 trillion. On Wednesday, shares of the company opened up more than 3%. More than any of its competitors, Nvidia and its record run have become emblematic of an AI investment frenzy that has pushed U.S. stock markets to new highs throughout the year, while making billionaires out of the industry's top shareholders. The same run has also raised concerns that AI could be vulnerable to a bubble. Some economists have drawn comparisons between the breakneck growth and enthusiasm of the AI boom and the first internet bubble in the late 1990s. Nvidia's latest stock surge comes a day after CEO Jensen Huang held the company's annual AI conference in Washington, D.C. There, Huang announced a wave of partnerships, investments and deals with companies ranging from the 5G network supplier Nokia to the ride-sharing firm Uber. Huang also said he expected $500 billion of AI chip orders through next year. Asked about the exploding values of AI companies on Tuesday and if the sector may be in a so-called bubble, Huang told NBC News that "these companies are generating real revenues" and the products they are selling are "profitable." Nvidia's $5 trillion market cap is also bigger than the combined market values of all of its competitors -- AMD, Intel, Broadcom, TSMC, Micron, ASML, Lam Research, Qualcomm and Arm Holdings. The stock has gained more than 50% this year and more than 1,500% over the last five years. In comparison, the S&P 500 has gained only 17% this year, while the Nasdaq has gained just 23%. On Tuesday night, President Donald Trump added more fuel to Nvidia shares, telling reporters that he would be discussing the company's Blackwell chip with Chinese President Xi Jinping on Thursday when the two presidents meet in South Korea. Blackwell is Nvidia's highest-powered AI chip. Touted by Trump as "super duper," sales of it to China have been restricted over fears that the Beijing could gain an edge over the U.S. with such powerful hardware. The Trump administration has at times sent differing signals about its willingness to limit China's acquisition of advanced AI chips. "We don't sell them our best stuff, not our second best stuff, not even our third best," Commerce Secretary Howard Lutnick said on CNBC in July. Selling China America's "fourth best" AI technology, however, was "cool" with the administration, he said.

Nvidia becomes world's first $5tn company amid stock market and AI boom

Silicon Valley chipmaker hits $5tn valuation just three months after it was first to break through the $4tn barrier Nvidia has become the world's first $5tn company, just three months after the Silicon Valley chipmaker was first to break through the barrier of $4tn in market value. In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund (IMF). Shortly after US stock markets opened Wednesday, Nvidia's shares touched $207.86 with 24.3bn shares outstanding, putting its market cap at $5.05tn. Ravenous appetite for Nvidia's chips, seen as the most cutting edge in powering artificial intelligence products and software, is the main reason that the company's stock price has increased so rapidly since early 2023. The wider US stock market has reached multiple record highs this week, buoyed up by expansive investment in artificial intelligence. On Tuesday, Nvidia CEO Jensen Huang disclosed $500bn in chip orders. The company also announced a partnership with Uber on robotaxis and a $1bn investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the US Department of Energy to build seven new AI supercomputers. Last month, Nvidia announced that it will invest $100bn in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August, Huang said Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Donald Trump said on Air Force One that he will speak with Chinese president Xi Jinping about Nvidia's chips on Thursday. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1tn, $2tn and eventually, $3tn. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the IMF has raised a similar alarm.

Nvidia makes history as first company to reach $5trn market value

The chipmaker has firmly placed itself at the centre of the global AI boom. Chips giant Nvidia has made history (29 October) as the first company to reach a market value of $5trn, having only recently surpassed the $4trn mark, where it beat rivals Apple and Microsoft, to the milestone. Both organisations have since passed the $4trn point, Microsoft in July, followed by Apple earlier this week. By the end of Wednesday's stock market session, company shares for Nvidia were up by 3pc at $207.04 a share. The global AI boom has played a significant role in Nvidia's success, as it has been integral in developing chips to power AI infrastructure. This past week, Nvidia's CEO made several key announcements regarding the future of the company amid increased global investment in AI. For example, a $500bn chip order, a partnership with Uber to develop robotaxis, plans to build seven AI supercomputers in collaboration with the US Department of Energy and a $1bn investment in Nokia to advance 5G and 6G telecommunication technologies. Just over a month ago, it was also disclosed that Nvidia will be investing $100bn into OpenAI, as part of a partnership that will enable OpenAI to scale its AI infrastructure using Nvidia's technology. Reportedly in return for a "significant stake" in the company. Described as a "giant project", by Huang, the first phase of the project is expected towards the second half of 2026. "Nvidia hitting a $5trn market cap is more than a milestone; it's a statement, as Nvidia has gone from chip maker to industry creator," Matt Britzman, a senior equity analyst at Hargreaves Lansdown told Reuters. "The market continues to underestimate the scale of the opportunity and Nvidia remains one of the best ways to play the AI theme." The news comes amid a period of tension however, as the US-China trade war continues. In April, Nvidia was informed by the US government that it would require an export licence to sell previously approved H20 processors to China, at a cost of $4.5bn to the company. Prompting Huang to say on an earnings call with investors that the Chinese market for AI chips is "effectively closed to US industry". The use of semiconductor chips was raised as a key issue for US president Donald Trump as he today (30 October) met with Chinese president Xi Jinping in Seoul South Korea, calling the meeting a success as it scored "12 out of 10". He stated that the White House only acts as a "referee' between China and large tech firms such as Nvidia. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

NVIDIA Becomes the First Company Ever to Hit $5T Market Cap | AIM

NVIDIA has now secured the title of the most valuable company, hitting a $5 trillion market capitalisation. This makes it the only company in the world to hit this mark. The giant's market cap began approaching $5 trillion in mid-October, with the company's stock reaching an all-time high that month. Specifically, as of the most recent trading data, NVIDIA's market cap was approximately $4.89 trillion on October 29, and on October 30, it stands at $5.03 trillion. At the company's recent GTC event in DC, Huang said that the world is moving from using general-purpose CPUs to faster GPU-based computing. He explained that computing is now built around AI factories, which are large data centres that train, run, and manage intelligent systems. Huang said AI is no longer limited to research or model training but is now being used in industries and government projects. Additionally, he announced a hybrid GPU-quantum architecture called NVQLink. This drives efforts to achieve quantum advantage in the near future. Huang said the company expects to surpass $500 billion in Blackwell GPU sales by the end of 2026, following revenue of over $100 billion recorded in the first half of 2025. NVIDIA's success stems from its applications across a variety of verticals, including AI hardware, telecommunications, quantum, robotics, autonomous mobility, AI factories and AI models. This is not all. NVIDIA is not the only company which has achieved new heights in the tech ecosystem. Even Microsoft and Apple have followed suit, reaching a $4 trillion market cap, a feat NVIDIA achieved earlier this July. Microsoft now stands at $4.03 trillion market cap and Apple at $4 trillion. Meanwhile, other giants like Google, Meta and Amazon stand at $3.33 trillion, $1.89 trillion and $2.46 trillion, respectively. NVIDIA's market cap comes just after it announced that its Blackwell chips have commenced production at TSMC's Fab 21 in Phoenix, Arizona, marking a significant step in US semiconductor manufacturing. The Blackwell wafer is the base material for semiconductors and will undergo layering, patterning, etching, and dicing before becoming NVIDIA's AI chip. TSMC Arizona will produce 2, 3, and 4-nanometer chips, as well as A16 chips, for AI, telecommunications, and high-performance computing applications.

AI chipmaker Nvidia is world's first $US5 trillion company

Gift 5 articles to anyone you choose each month when you subscribe. Nvidia has become the world's first $US5 trillion ($7.6 trillion) company, just three months after the Silicon Valley chipmaker was first to break through the $US4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago.

NVIDIA becomes the first company in history to be worth $5 trillion

TL;DR: NVIDIA has become the first company valued at $5 trillion, surpassing the GDP of every country worldwide except the United States and China. This milestone highlights NVIDIA's dominant market position and significant impact on the global economy and technology sector. NVIDIA has become the first publicly traded company on Earth to reach a $5 trillion valuation, and it was only three months ago that it was worth $4 trillion. According to data provided by the World Bank, the value of NVIDIA exceeds the total Gross Domestic Product (GDP) of every country on Earth besides the United States and China, following the company's share price on Wednesday opening up by more than 3%. NVIDIA's skyrocketing valuation can be attributed to the booming AI market, with tech companies around the world looking to invest as much as possible into the emerging software, and to achieve a sophisticated AI, companies need the infrastructure to operate it. That is where NVIDIA comes in. NVIDIA's AI GPUs have become such a sought-after product that they have become the subject of international trade restrictions, geopolitical footballs between competing countries, and even spawned a black market where the GPUs are banned from being sold. All of this is part of the greater race between countries and companies to create the Artificial General Intelligence (AGI), the world's most sophisticated AI software. NVIDIA has been at the forefront of the emerging AI market, and it's certainly reaped the rewards, with the company's $5 trillion valuation now exceeding the combined market values of all of its competitors, such as AMD, Intel, Broadcom, Micron, TSMC, ASML, Qualcomm, and Arm Holdings. Furthermore, NVIDIA stock has increased by 1,500% over the last five years, and 50% in the last year alone.

Chipmaker Nvidia on track to become first $5 trillion company

Nvidia is on track to become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.80 in premarket trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. On Tuesday Nvidia CEO Jensen Huang disclosed $500 billion in chip orders. The company is also teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Multiple media reports state that President Donald Trump is likely to speak with Chinese President Xi Jinping about Nvidia's chips on Thursday.

Chipmaker Nvidia on Track to Become First $5 Trillion Company

Nvidia is on track to become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.80 in premarket trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. On Tuesday Nvidia CEO Jensen Huang disclosed $500 billion in chip orders. The company is also teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Multiple media reports state that President Donald Trump is likely to speak with Chinese President Xi Jinping about Nvidia's chips on Thursday.

Nvidia Becomes the First Company to Reach a $5 Trillion Market Value, Leaving Apple and Microsoft in the Dust

Four months after crossing $4 trillion mark, Nvidia has become the first company to ever achieve a $5 trillion market capitalization. Nvidia's stock was up over 4% on Wednesday morning, topping $210, more than the $205.76 needed for a $5 trillion market value. Nvidia is now worth more than its competitors, including AMD, Intel, Micron and Qualcomm, combined. Its market value also surpasses that of entire sectors of the S&P 500, including utilities and consumer staples, reports The Wall Street Journal. The milestone reflects the exceptional trajectory of Nvidia, which has pivoted in the past decade from making graphics cards to manufacturing AI chips, positioning itself at the heart of the AI boom. Nvidia counts companies like Meta, Microsoft and OpenAI as some of its biggest customers. Nvidia's stock has grown more than 50% year-to-date and over 1,500% over the past five years. "A $5 trillion market cap would have been unimaginable a few years ago," Keith Lerner, chief investment officer and chief market strategist at Truist Advisory Services, told Bloomberg. "The market is certainly putting a lot of stock into the idea that AI will be transformational." Related: How Nvidia CEO Jensen Huang Transformed a Graphics Card Company Into an AI Giant: 'One of the Most Remarkable Business Pivots in History' Nvidia's historic jump in value happened right after CEO Jensen Huang announced on Tuesday that the company expects to bring in $500 billion in AI chip orders and build seven supercomputers for the U.S. government. In other words, Huang shared that Nvidia has a massive pipeline of AI orders lined up, and is also about to play a major role in powering America's tech infrastructure. Nvidia also revealed on Tuesday that it is taking a $1 billion stake in Nokia, a firm that supplies 5G cellular equipment to telecom companies, to develop next-generation 6G cellular technology using Nvidia's chips. Related: Nvidia's CEO Jensen Huang Says He's 'Created More Billionaires' Than Anyone Else Nvidia first hit $2 trillion in market value in March 2024 and achieved a $3 trillion market capitalization in June 2024, highlighting the rapid growth experienced by the company that was fueled by demand for AI computing technology. Nvidia became the first company to cross $4 trillion in market capitalization in early July. Microsoft was the second, joining the $4 trillion club in late July. Apple recently became the third company to surpass a $4 trillion market capitalization, achieving the milestone earlier this week. Microsoft and Apple are the next two biggest companies following Nvidia, with valuations of about $4 trillion each at the time of writing. Huang's net worth has skyrocketed as Nvidia's market value has grown. According to the Bloomberg Billionaires Index, Huang was worth about $180 billion at the time of writing, up nearly $68 billion from the beginning of the year, with the majority of his fortune tied up in his stake in Nvidia. He owns about 3.5% of the company, per an October 2025 filing.

Big Tech's AI spending is accelerating (again)

Tech giants Google, Meta, Microsoft, and Amazon are significantly increasing AI spending, raising concerns about a potential bubble. Despite billions invested in data centers to meet demand, the long-term returns of AI products remain uncertain. Four of the tech industry's wealthiest companies made it clear this week that their spending on artificial intelligence was not about to slow down. But the outlays from Google, Meta, Microsoft and Amazon -- which all raised their spending by billions of dollars, saying they needed to meet demand for AI -- are increasingly feeding concerns that the tech industry is heading toward a dangerous bubble. AI remains an unproven and expensive technology that could take years to fully develop. How much companies will ultimately get back in return from AI products like chatbots is unclear. And smaller companies pursuing AI gold, financial analysts pointed out, are not nearly as wealthy. Last week, the Bank of England wrote that while the building of data centers, which provide computing power for AI, had so far largely come from the cash produced by the biggest companies, it would increasingly involve more debt. If AI underwhelms -- or the systems ultimately require far less computing -- there could be growing risk. "This is a fast-evolving topic, and the future is highly uncertain," the bank wrote. Concerns mushroomed this week after a series of earnings reports. On Wednesday, Google said it was increasing what it planned to spend on AI data center projects this year by $6 billion, after dropping nearly $64 billion on them over the past nine months. Microsoft said it had spent $35 billion in its latest quarter, $5 billion more than what it had told investors to expect just a few months ago. And Meta raised its spending forecast to at least $70 billion by the end of the year, which would be nearly double what it spent last year. On Thursday, Amazon also said it would be "very aggressive" in adding more data centers and would spend $125 billion this year on capital expenditures -- and even more next year. Google, Microsoft and Amazon, which are the three largest providers of cloud computing in the United States, said they did not have enough computing power to meet customer demand. That's despite shelling out a combined $112 billion in just the past three months on capital expenditures, which included construction of data centers. Over the past 12 months, those three and Meta totaled more than $360 billion in capital expenditures. "I thought we were going to catch up," Amy Hood, Microsoft's finance chief, said in a call with investors Wednesday. "We are not. Demand is increasing. It is not increasing in just one place. It is increasing across many places." That same day, the Federal Reserve chair, Jerome Powell, addressed concerns that the AI build-out was unsustainable. He said he did not believe the AI investments resembled the late-1990s dot-com boom. Back then, he said, there "was a clear bubble" when the businesses driving the market "were ideas rather than companies." Now, Powell said, the largest companies behind the transformation are highly valued and largely funding their expansions from their own businesses, rather than loose lending. "I won't go into particular names, but they have earnings, and it looks like they have business models and profit and that kind of thing, so it is really a different thing," he said. Powell did not comment on concerns that, unlike the biggest tech companies, smaller companies -- often the customers and partners of those cloud computing giants -- were also spending fast on AI projects without the safety net of enormously lucrative online advertising or software businesses. But for the moneyed foursome that announced earnings this week, spending hundreds of billions of dollars on new data centers is not a worry -- not when they churned out a combined $109 billion in operating profit, which excludes taxes and investments, in just the last quarter. Hood said Microsoft had $400 billion in future sales under contract. "That's for booked business," she said. "Today." The number did not include the $250 billion in computing power that OpenAI, the creator of the ChatGPT chatbot, committed to buy from Microsoft in an announcement this week. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to AI systems. The two companies have denied the suit's claims.) Alphabet, the parent company of Google, raised estimates for how much it planned to spend this year to at least $91 billion from $85 billion. The company is processing at least 20 times as much data through its various AI products as it did a year ago, CEO Sundar Pichai said. Amazon has doubled its cloud infrastructure capacity since 2022 and expects to double it again by 2027 to meet demand, CEO Andy Jassy told investors Thursday. "As fast as we're adding capacity right now," he said, "we're monetizing it." Meta, which owns Instagram, Facebook and WhatsApp, also raised its spending estimate for the year, from at least $66 billion to at least $70 billion. But it made a different case for the expenditures. Unlike the large cloud providers, which have other customers that can use their data centers, Meta makes money from AI only when it uses the systems itself -- in its core products to make digital ads more effective or its social networking products more engaging. It is also investing heavily to develop what it calls "superintelligence," a theoretical technology where AI systems become smarter than humans. Mark Zuckerberg, Meta's CEO, said he would rather build more and not less to be ready should superintelligence arrive quickly. "That way, if superintelligence arrives sooner, we will be ideally positioned for a generational paradigm shift in many large opportunities," he said. If it takes longer, Zuckerberg said, Meta could use the infrastructure for its core business. "In the worst case," he added, "we will just slow building new infrastructure for some period while we grow into what we build." Investors were less sure. Meta's stock fell 11% Thursday.

AI Chipmaker Nvidia Is The First $5 Trillion Company

Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund. Nvidia has become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.86 in early morning trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund. On Tuesday Nvidia CEO Jensen Huang disclosed $500 billion in chip orders. The company also announced a partnership with Uber on robotaxis and a $1 billion investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. President Donald Trump said on Air Force One that he will speak with Chinese President Xi Jinping about Nvidia's chips on Thursday.

Jensen Huang Says Nvidia Has Visibility Into 'Half A Trillion Dollars' In Revenue As It Surpasses Apple, Microsoft To Hit $5 Trillion Valuation - NVIDIA (NASDAQ:NVDA)

On Wednesday, Nvidia Corp. (NASDAQ:NVDA) became the world's first company to reach a $5 trillion market capitalization, overtaking both Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT), as CEO Jensen Huang revealed unprecedented demand for its artificial intelligence chips. Nvidia Hits Historic $5 Trillion Milestone Nvidia shares jumped more than 14% in the last five days, according to Benzinga Pro. Apple and Microsoft now trail behind, each valued at roughly $4 trillion. The surge came after Huang's remarks at the company's GTC developer conference in Washington, D.C., where he said Nvidia has secured more than $500 billion in chip orders through 2026. "I think we are probably the first technology company in history to have visibility into half a trillion dollars [in revenue]," Huang told attendees, referring to demand for the company's Blackwell and upcoming Rubin chip architectures. See Also: Intel Wraps Up Altera Stake Sale In Bid To Streamline Business Trump-Xi Meeting May Shape Nvidia's China Future Momentum also grew after President Donald Trump said he plans to discuss Nvidia's Blackwell chips with Chinese President Xi Jinping during their meeting in Busan, South Korea. Calling the processor "super-duper" and "probably 10 years ahead of any other chip," Trump hinted that export restrictions could be revisited, reported Fortune. Nvidia has struggled with access to China -- its market share there plunged from 95% to zero after U.S. export controls took effect. The company reported $2.8 billion in revenue from China last quarter, down from $15.5 billion previously. AI, Manufacturing And Partnerships Drive Growth Huang announced that Nvidia's Blackwell GPUs are now in full production at a facility in Arizona, part of a broader U.S. manufacturing push. Nvidia has already shipped six million Blackwell chips and expects to deliver 14 million more in the next five quarters. The company also unveiled $1 billion in partnerships with Nokia Corp (NYSE:NOK) to develop telecom equipment for 5G and 6G networks and new collaborations with Oracle to build seven AI-powered supercomputers for the U.S. Department of Energy. Nvidia's meteoric rise -- from a $1 trillion valuation in mid-2023 to $5 trillion today -- underscores its central role in powering the global AI boom. Benzinga's Edge Stock Rankings place the chipmaker in the 97th percentile for Growth and 93rd for Quality, underscoring its robust performance compared to rivals such as Intel (INTC). Read Next: Trump Turnberry Is 'Our Monalisa' Says Eric Trump As He Shrugs Off Millions In Losses -- 'We Don't Give A...' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: jamesonwu1972 via Shutterstock NVDANVIDIA Corp$207.400.17%OverviewAAPLApple Inc$271.690.74%MSFTMicrosoft Corp$528.39-2.43%NOKNokia Oyj$7.15-2.46%Market News and Data brought to you by Benzinga APIs

Nvidia becomes first $5 trillion firm as AI rally picks up steam

Nvidia achieved a historic $5 trillion market capitalization on Wednesday as CEO Jensen Huang's spree of deals catapults the artificial intelligence frenzy to new heights. The shares closed 3.1% higher at $207.16, propelling Nvidia just over the milestone. It's only been four months since the company cracked the $4 trillion barrier, and the rally has accelerated as Huang forges new agreements to supply companies from Nokia Oyj to Samsung Electronics and Hyundai Motor Group with chips. Nvidia has become the most-important stock in a bull market that's been driven by optimism for AI to revolutionize the global economy. With a 54% gain this year through Wednesday's close, the stock is single handedly responsible for nearly a fifth of the S&P 500 Index's 17% advance in 2025. The next two biggest companies are Microsoft and Apple, with valuations of about $4 trillion each.

NVIDIA Becomes the First to Hit $5 Trillion in Market Cap as Jensen & Co. Manage to Keep Running the AI Bandwagon With Full Force

NVIDIA's market capitalization has reached a record high of $5 trillion after Jensen's recent GTC announcements, suggesting that the AI hype still has a lot of 'juice' in it. We have watched NVIDIA evolve from humble beginnings, especially as gamers, over the past few years. Team Green was initially all about consumer GPUs, which were the talk of the town. However, since the advent of AI, NVIDIA has established a foundational position in providing the necessary computing power to Big Tech, being responsible for a significant portion of the hardware deployed in the industry. The relentless pursuit by NVIDIA's CEO and his team has now led to a point where the firm's capitalization has reached a record $5 trillion, credited to GTC-driven announcements. One of the reasons NVIDIA saw a massive market cap push yesterday was due to Jensen's keynote at GTC 2025 in Washington, which marked the first time the firm delivered a pivotal event in America's capital. The event featured partnerships with notable companies like Nokia and Palantir, demonstrating to the world that AI, as a technology, still has numerous use cases that the world has yet to discover. Of course, retailers saw hope in the AI bandwagon, which is why the markets responded accordingly. NVIDIA also saw a glimmer of hope today for a potential breakthrough for China's AI market, as President Trump revealed that he'll discuss the Blackwell AI chip in his meeting with the Chinese counterpart. Getting back into the Chinese AI markets is a massive "bonus" for NVIDIA right now, since the firm has already excluded the region in its guidance, hence the restoration of business could mean an extra "tens of billions" for Team Green in revenue, driven by the more advanced Blackwell solution; however, this isn't certain to happen for now. NVIDIA has managed to break record after record in recent years, not just in terms of market capitalization, but also in advancements in computing architectures, which is why the firm is the dominant AI compute provider. It would be interesting to see how the future unfolds for NVIDIA and AI, given that the firm is now too big to fail.

Nvidia is now worth $5 trillion as it consolidates power in AI boom

Nvidia's market value surged past $5 trillion, driven by the AI boom ignited by ChatGPT. The chip giant's essential components are now a linchpin of global economic growth and U.S. foreign policy, with President Trump leveraging its strategic importance in trade talks. Despite "unbridled optimism," questions remain about AI's ultimate utility and the market's dependence on a few tech titans. As Jensen Huang, the CEO of chip-making giant Nvidia, traveled to Asia to meet with President Donald Trump on Wednesday, his company's value topped $5 trillion. It was a show of wealth that would have been unthinkable a few years ago. But that was before the ChatGPT chatbot ignited an artificial intelligence boom that is remaking the global economy. It was before other tech titans began spending hundreds of billions of dollars on construction projects on almost every continent. And it was before Nvidia's computer chips, the most essential and expensive component in almost every AI scheme, became a linchpin of the Trump administration's foreign policy. Nvidia's milestone, making it the first publicly traded company to top $5 trillion in market value, is indicative not only of the astonishing levels of wealth consolidating among a handful of Silicon Valley companies but also the strategic importance of this company, which added $1 trillion in market value in just the past four months. Nvidia has become a driving force behind the U.S. economy. Spending on data centers, which are filled with the company's chips, accounted for 92% of the country's gross domestic product growth in the first half of the year, according to Jason Furman, a professor of economic policy at Harvard. Without it, the economy would have grown 0.1%. But Nvidia's stunning growth also comes with a warning to investors, from the biggest banks on Wall Street to small-time traders on Main Street, that the stock market is becoming more and more dependent on a group of technology companies that are churning out billions in profits and splurging to develop an unproven technology that needs to deliver enormous returns. "There's unbridled optimism about where this technology is going to go," said Gene Munster, a managing partner at Deepwater Asset Management, which invests in emerging technology companies. "But the question is: Will it deliver? The usefulness of AI is still limited today." There have been periods of market concentration before but none as stark as the one created by AI. Nvidia alone makes up more than 8% of the S&P 500, according to Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices. Apple and Microsoft now top $4 trillion. Those companies combined with Meta, Amazon, Alphabet and Tesla make up more than a third of the entire index. Nvidia's AI chips, which account for more than 90% of the market, are highly coveted by businesses and governments around the world. Trump has put them at the forefront of America's trade strategy, striking deals to sell AI chips to the United Arab Emirates, Saudi Arabia, South Korea and Japan. As the president traveled across Asia this week, he signaled that Nvidia would be a factor in U.S.-Chinese trade talks. Sales of its chips to China were suspended over the summer as tensions flared between those countries. The nations have been wrestling with how to deal with a powerful technology that can be used to develop advanced weaponry and drive economic opportunity. Huang, 62, has spent much of the year bouncing between Washington and Beijing trying to find a solution. In the process, he has become a valuable conduit between China's top leader, Xi Jinping, and Trump, who is eager to strike a trade deal between the countries, said two people familiar with the confidential trade talks who spoke on the condition of anonymity. "Nvidia works with governments across the world," said John Rizzo, a company spokesperson. "We do not engage in geopolitical or diplomatic discussions between governments." White House spokesperson Kush Desai said: "President Trump and other administration officials regularly hear from and speak with business leaders, but it's President Trump's personal relationships with world leaders, including President Xi, that are driving America's global leadership and deal making." Nvidia has further endeared itself to Trump by shifting some of its manufacturing to the United States. This month, the company started making its latest AI chip, known as Blackwell, at Taiwan Semiconductor Manufacturing Co.'s plant in Arizona. Last week, Huang delivered Trump a signed version of the chip in a red case during a private meeting in the Oval Office. Trump praised the product in Tokyo this week and called Huang "brilliant." At a news conference after Nvidia's first major conference in Washington on Tuesday, Huang said that the United States and China would benefit from allowing Nvidia to sell its technology in China. The United States would see its technology providers become the foundation for AI and American AI companies in the world's most populous nation. China would receive more efficient chips that make its AI companies more productive. He said the question for China was: "Do they want to be open market or selectively open market? Our job is to wait until they want us to be there." Speaking to reporters Wednesday before the highly anticipated U.S.-China trade talks, Trump said that he and Xi would speak about Nvidia's Blackwell chip, which he called "super duper." The prospects of Nvidia's return to China helped send its share price up almost 3% on Wednesday and pushed its market value above $5 trillion, with its stock ending the trading day at about $207 a share. The company could make more than $50 billion in sales in China over the next year, analysts estimate. Nvidia has agreed to pay the U.S. government 15% of the money it makes from selling AI chips to China, as a result of an agreement Huang and Trump reached in July. Huang said Tuesday that the Trump administration was working on a new regulation to make those payments possible. Additional sales to China would be the latest good news for Nvidia. Onstage at Nvidia's event Tuesday, Huang said that AI was as essential to the future as electricity and the internet. "Every company will use it," said Huang, who spoke to several thousand people in his trademark black leather jacket. "Every nation will build it." Huang highlighted how companies like Microsoft and software company Oracle were pouring hundreds of billions of dollars into building data centers for AI. He showed a chart projecting that the companies' spending would top $549 billion this year, more than double what they spent in 2023, according to Morgan Stanley. He said that Nvidia had orders to ship 20 million of its newest chips through the end of next year, up from 4 million of its previous generation shipped between 2023 to 2025. The orders are worth about $500 billion in sales, far more than analysts had estimated. But Huang's speech also stoked skepticism about whether the AI spending boom was justified. Some investors have questioned whether AI will increase productivity and sales. Huang offered few concrete examples of that, pointing primarily to how software engineers at Nvidia use it to automate computer programming. "We're still really, really early in this process, and there have been enough little examples from early artificial intelligence businesses that have made people say, 'Wow,'" said Bob O'Donnell, president of TECHnalysis Research, a technology research firm. "But converting those examples that have shown promise into something that changes how people work is taking much longer than people have expected." Huang put Nvidia in position to lead the AI transformation by betting that his company's chips -- known as graphics processing units, or GPUs -- would be essential to building AI. Before then they were popular for powering video game computers and the machines for creating cryptocurrencies. He plowed money into a custom programming language to control those chips that became critical to building AI systems. The combination of the chips and software has allowed Nvidia to dominate what has become the next wave in computing, much as Intel and Microsoft controlled the PC era and Apple the shift to mobile devices like the iPhone. Nvidia has seen a sevenfold increase in sales since OpenAI's ChatGPT set off an AI arms race in late 2022. It expects to post more than $26 billion in profit for the current quarter, which would eclipse Wall Street projections for other tech heavyweights like Apple and Meta. The speed of Nvidia's rise left longtime Wall Street watchers at a loss for words. "It's incredible," David Faber, one of the hosts of the CNBC show "Squawk on the Street," said Wednesday morning. "Did you ever think in our lifetime we'd see a $5 trillion company?"

AI boom drives trillion-dollar tech valuations and record bets on chipmakers

Tech shares have risen sharply on optimism over AI's potential and a series of partnerships and deals with major global companies, including OpenAI, Oracle, Nokia and drugmaker Eli Lilly. Top technology companies hit fresh valuation milestones in October, as their shares climbed on expectations of robust demand for AI chips and computing infrastructure driven by the artificial intelligence boom. Nvidia's shares jumped nearly 11% over the past month, adding about $500 billion in market value as it became the first company to reach a $5 trillion valuation. Chief executive Jensen Huang this week announced $500 billion in AI chip orders and plans to build seven supercomputers for the US government. Tech shares have risen sharply on optimism over AI's potential and a series of partnerships and deals with major global companies, including OpenAI, Oracle, Nokia and drugmaker Eli Lilly. Microsoft and Apple also reached $4 trillion market valuations by end-October, just over three months after Nvidia's surge to that level in July. Microsoft reported record capital spending of nearly $35 billion for its fiscal first quarter on Wednesday and said it expects investments to rise further this year Broadcom gained 17% over the past month to reach a $1.82 trillion valuation, while TSMC added 15% to $1.28 trillion and Alphabet climbed 13% to $3.32 trillion. The market value-to-capital expenditure ratio for semiconductor firms stood at 75.1, the highest among all global sectors, suggesting investors expect strong returns from the heavy AI-related spending by chipmakers. The market values of Berkshire Hathaway, JPMorgan Chase and Tencent Holdings fell 5.4%, 3.1% and 2.5% over the past month to $1.03 trillion, $840 billion and $760 billion, respectively.

Nvidia becomes first $5T company powered by AI frenzy: Here's how...

Nvidia made history on Wednesday as the first company to reach $5 trillion in market value, powered by a stunning rally that has cemented its place at the center of the global artificial intelligence boom. The milestone underscores the company's swift 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 the launch of ChatGPT in 2022, Nvidia's shares have climbed 12-fold as the AI frenzy propelled the S&P 500 to record highs, igniting a debate on whether frothy tech valuations could lead to the next big bubble. The new milestone, coming just three months after Nvidia breached the $4 trillion mark, would surpass the total cryptocurrency market value and equal roughly half the size of Europe's benchmark equities index, the Stoxx 600 index. "Nvidia hitting a $5 trillion market cap is more than a milestone; it's a statement, as Nvidia has gone from chip maker to industry creator," said Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in the company. "The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme." Shares of the Santa Clara, California-based company rose 4.6% after a string of recent announcements solidified its dominance in the AI race. Huang unveiled $500 billion in AI chip orders on Tuesday and said he plans to build seven supercomputers for the US government. Meanwhile, President Trump is expected to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping on Thursday. Sales of the high-end chip have been a key sticking point between the two sides due to Washington's export controls. At current prices, CEO Huang's stake in Nvidia would be worth about $179.2 billion, according to regulatory filings and Reuters calculations. He is the world's eighth-richest person, per Forbes' billionaire list. Born in Taiwan and raised in the United States from age nine, Huang has led Nvidia since founding it in 1993. Under his leadership, the company's H100 and Blackwell processors have become the engines behind large-language models powering tools such as ChatGPT and Elon Musk's xAI. While Nvidia remains the clear front-runner in the AI race, Big Tech peers such as Apple and Microsoft have also crossed $4 trillion in market value in recent months. Analysts say the rally reflects investor confidence in unrelenting AI spending, though some warn valuations may be running hot. "AI's current expansion relies on a few dominant players financing each other's capacity. The moment investors start demanding cash-flow returns instead of capacity announcements, some of these flywheels could seize," said Matthew Tuttle, CEO of Tuttle Capital Management. Tech companies' heavy weightage in the S&P 500 and Nasdaq 100 gives them broad influence over global markets. Nvidia is due to report quarterly results on Nov. 19. The company's dominance has drawn global regulatory scrutiny, with US export curbs on advanced chips making it a key pawn in Washington's strategy to limit China's access to AI technology. "Nvidia clearly brought their story to D.C. to both educate and gain favor with the US government," said Bob O'Donnell of TECHnalysis Research. "They managed to hit most of the hottest and most influential topics in tech." The developer conference on Tuesday also served as a platform for Huang to walk a geopolitical tightrope. He praised Trump's "America First" policies for accelerating 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 seeking to challenge Nvidia's dominance in high-end AI chips, but it remains the industry's top choice.

Nvidia nears US$5 trillion in valuation as AI boom powers meteoric rise

Nvidia was set to make history on Wednesday as the first company to reach US$5 trillion in market value, extending a powerful rally that has cemented its place at the center of the global artificial intelligence boom. Shares of the Santa Clara, Calif.-based company rose 3.6 per cent in premarket trade after a string of recent announcements reinforced its lead in the AI race. CEO Jensen Huang unveiled $500 billion in AI chip orders on Tuesday and said heplans to build seven supercomputers for the U.S. government. Moreover, U.S. President Donald Trump is expected to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping on Thursday, reflecting the company's growing clout in an escalating U.S.-China tech rivalry. Nvidia's $5 trillion valuation, coming just over three months after it crossed $4 trillion, would complete the company's transformation from a niche graphics-chip designer into the backbone of the global AI industry, helping it outpace rivals and turning Huang into a Silicon Valley icon. That valuation would also surpass the entire cryptocurrency market and equal roughly half the value of the pan-European Stoxx 600 index. Nvidia's shares have jumped nearly twelve-fold since OpenAI's ChatGPT launched nearly three years ago, massively outperforming the benchmark S&P 500 index's 69% gains over the same period. "In the long run, we expect tech titans to strive to find second-sources or in-house solutions to diversify away from Nvidia in AI, but these efforts will, at best, only chip away at, but not supplant, Nvidia's AI dominance," said Brian Colello, senior equity analyst at Morningstar. At current prices, CEO Huang's stake in Nvidia would be worth about $177.4 billion, according to regulatory filings and Reuters calculations, making him the world's eighth-richest person, per Forbes. Born in Taiwan and raised in the United States from age nine, Huang has led Nvidia since founding it in 1993. Under his leadership, the company's H100 and Blackwell processors have become the engines behind large-language models powering tools like ChatGPT and Elon Musk's xAI. While Nvidia remains the clear front runner in the AI race, peers such as Apple and Microsoft have also crossed $4 trillion in market value in recent months. Analysts say the rally reflects investor confidence in unrelenting AI spending, though some warn valuations may be running hot. The companies' heavy weightings in the S&P 500 and Nasdaq 100 gives them broad influence over global markets. Nvidia is due to report quarterly results on Nov. 19. The company's dominance has drawn global regulatory scrutiny, with U.S. export curbs on advanced chips making it a key pawn in Washington's strategy to limit China's access to AI technology. "Nvidia clearly brought their story to D.C. to both educate and gain favor with the U.S. government," said Bob O'Donnell of TECHnalysis Research. "They managed to hit most of the hottest and most influential topics in tech." The developer conference on Tuesday also served as a platform for Huang to walk a geopolitical tightrope. He praised Trump's "America First" policies for accelerating domestic tech investment, while warning that excluding China from Nvidia's ecosystem could limit U.S. access to half of the world's AI developers. Rivals including Advanced Micro Devices AMD.O and several well-funded startups are seeking to challenge Nvidia's dominance in high-end AI chips, but it remains the industry's top choice.

The Age of Relentless Compute -- Why AI Is New Oil, and Everyone's Drilling at Once | Investing.com UK

There are moments in market history when capital stops behaving like money and starts acting like obsession -- when spending becomes the strategy, not the consequence. That's exactly where we are now with artificial intelligence. The Street has stopped asking how much and started asking how soon. Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) -- today's digital oil barons -- aren't chasing incremental growth anymore. They're racing for computational supremacy, throwing more than $400 billion at AI build-outs this year and promising even more next. This isn't a normal capex cycle; it's an arms race wearing the mask of progress. Every major player now talks less like a tech firm and more like an energy state. Meta admits it's still "compute-starved." Microsoft's Amy Hood says demand is outrunning their datacenter build by entire quarters. Amazon's Andy Jassy sounds more like a refinery boss than a cloud executive, talking about throughput and capacity. They're all saying the same thing in different ways: they're short power, not electrical power, but compute. It's the new barrel of oil. Whoever controls it controls the future. Everyone else will pay rent. But traders have seen this movie before. The railroads, the telecom boom, the shale patch -- every time, the same pattern: capex overshoots, supply catches up too late, and demand monetizes even later. What begins as visionary investment often ends as overbuilt infrastructure. The same old question hangs over Silicon Valley's earnings calls now: will demand justify the wells? Analysts are whispering "bubble," but bubbles are just what happen when imagination laps reality. And right now, imagination has the lead. From a trader's lens, it's a fascinating moral hazard: the market is rewarding overspending as long as it carries the AI label. Google says it's already "making billions" from AI -- maybe, but most of those billions are narrative, not net. It's the same playbook as the dot-com era: build the infrastructure, promise the monopoly, pray the profits arrive later. Some are buying that future; others are shorting the delay. Both camps can make money, just on different clocks. Under the hood, this AI-industrial complex is devouring real-world inputs: chips, copper, power, water, and land. It's not just a tech story anymore; it's an energy, commodities, and liquidity story all at once. Each new data farm is a physical bet on electrons and cooling -- a miniature energy market in itself. Even oil traders are watching the build-out, because every server rack is a small barrel of oil demand once you price the electricity and cooling load. The AI supercycle could end up looking more like an emerging-market construction boom than a Silicon Valley product cycle. And yet, the payoff still lives somewhere over the horizon. AI remains mostly a cost center, not a cash machine. Meta's ad engine is "compute-starved," Microsoft's Azure margins are thinning under expansion costs, and Alphabet is doubling its infrastructure spend without clear visibility on payback. The market is assuming they can out-scale their own burn rate -- but that faith has an expiry date. If ROI takes too long, this could become the most crowded duration trade in tech history: everyone long infrastructure, everyone short patience. As a trader, you learn that momentum without cash flow is just gravity deferred. Big Tech is front-loading two years of spending to chase one year of perceived opportunity. The fear of missing out is the most expensive emotion in finance, and they're all feeling it. If adoption slows, these names become capex traps. If rates stay sticky, that deferred return becomes a duration nightmare. Still, you can't fade the structural theme. The AI race isn't a quarterly trade -- it's the new liquidity regime. Machines need power, power needs metal, and metal needs credit. That cascade links AI directly into bond markets, commodities, and FX. As long as U.S. megacaps keep outspending the world, global capital will keep chasing them, and the US dollar stays bid. AI has become a U.S. export -- not in chips or software, but in narrative dominance. So are we in a bubble? The honest answer is both yes and no. Yes in valuations; no in infrastructure. The world genuinely needs more compute -- the only debate is who gets paid to build it. If this is early, these are the railroads of the 1860s. If it's late, it's fiber-optic 1999. Either way, the market will price both stories before it settles on the truth. From where I sit, this is not the moment to look away from the AI trade. It's the most consequential capital rotation of this generation, and it's bleeding into everything -- from gold to the yen. By the end of 2027, we'll know whether this was the dawn of a new industrial age or the moment we confused horsepower with profit. Until then, trade it like a refinery: refine the noise, distill the signal, and remember -- in this new economy, compute is the crude, data is the pipeline, and liquidity is the flame that keeps it all burning.

Nvidia stocks: NVDA share price jumps after AI darling becomes first Wall Street company to hit $5 trillion value

Nvidia share price: Nvidia has become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Nvidia stock at the US Stock Market's key index S&P 500 was up by 4.4 per cent. Nvidia share price rallied the AI giant became the first company valued at $5 trillion on Wall Street, just three months after the AI darling was the first to break through the $4 trillion barrier. NVDA stocks crossed $210-mark. Nvidia has become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence craze that's widely viewed as the biggest tectonic shift in technology since Apple co -- founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched $207.86 in early morning trading with 24.3 billion shares outstanding, putting its market cap at $5.05 trillion. In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund, AP reported. Nvidia carved out an early lead in tailoring its chipsets known as graphics processing units, or GPUs, from use in powering video games to helping to train powerful AI systems, like the technology behind ChatGPT and image generators. Demand skyrocketed as more people began using AI chatbots. Tech companies scrambled for more chips to build and run them. Nvidia CEO Jensen Huang has downplayed concerns of a bubble bursting, saying that the generative AI chatbots that were merely "interesting" when they first took hold a few years ago are now becoming so useful that they will be profitable. Huang was heading to South Korea this week as leaders from major Pacific Rim economies, including the United States, China and Japan, are gathering for the annual Asia-Pacific Economic Cooperation summit that has long championed free trade but is now confronting sweeping U.S. tariffs on technology and other products. The multilateral gathering in Gyeongju is expected to be overshadowed by a sideline event -- a face-to-face meeting on Thursday between Trump and Chinese leader Xi Jinping -- as their intensifying trade war leaves the South Korean hosts in a difficult balancing act. On Tuesday, Huang disclosed $500 billion in chip orders. The company also announced a partnership with Uber on robotaxis and a $1 billion investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August, Huang said that Nvidia was discussing a potential new computer chip designed for China with the Trump administration. Trump said on Air Force One that he will speak with Xi about Nvidia's chips on Thursday on the sidelines of the APEC event that Huang is also attending. In August, Trump announced a deal with chipmakers Nvidia and AMD to lift export controls on sales of advanced chips to China in exchange for a 15% cut of the revenue, despite concerns from national security experts that such chips will end up in the hands of Chinese military and intelligence services. That same month, Trump announced that the U.S. government had taken a 10 percent stake in Intel worth around $11 billion. Then, Nvidia announced last month that it's investing $5 billion in Intel and will collaborate with the struggling semiconductor company. Q1. Has Nvidia become $5 trillion company? A1. Nvidia has become the first $5 trillion company, just three months after the Silicon Valley chipmaker was first to break through the $4 trillion barrier. Q2. Which are other $4 trillion companies? A2. Nvidia was the first company to become $4 trillion firm. Microsoft and Apple have it subsequently. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1 trillion, $2 trillion and eventually, $3 trillion.

Chipmaker Nvidia becomes first five trillion dollar company | BreakingNews

Nvidia has become the first five trillion dollar (£3.8 trillion) company, just three months after the Silicon Valley chipmaker was the first to break through the four trillion dollar (£3 trillion) barrier. Hitting the new benchmark puts more emphasis on the upheaval being unleashed by an artificial intelligence (AI) craze that is widely viewed as the biggest tectonic shift in technology since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at one trillion dollars, two trillion dollars and eventually three trillion dollars. But there are concerns of a possible AI bubble, with officials at the Bank of England earlier this month flagging the growing risk that tech stock prices pumped up by the AI boom could burst. The head of the International Monetary Fund (IMF) has raised a similar alarm. The ravenous appetite for Nvidia's chips is the main reason that the company's stock price has increased so rapidly since early 2023. On Wednesday the shares touched 207.86 dollars (£157.40) in early morning trading with 24.3 billion shares outstanding, putting its market cap at 5.05 trillion dollars (£3.82 trillion). In comparison, Nvidia's value is greater than the GDP of India, Japan and the United Kingdom, according to the IMF. On Tuesday Nvidia chief executive Jensen Huang disclosed 500 billion dollars (£378 billion) in chip orders. The company also announced a partnership with Uber on robotaxis and a one billion dollar (£757 million) investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming with the US Department of Energy to build seven new AI supercomputers. Last month Nvidia announced that it will invest 100 billion dollars (£75 billion) in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centres to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT. In August Mr Huang said Nvidia was discussing a potential new computer chip designed for China with the Trump administration. President Donald Trump said on Air Force One that he will speak to Chinese President Xi Jinping about Nvidia's chips on Thursday.

Asia Trades Awareness, Not Optimism, as AI Fuels the New Liquidity Cycle | Investing.com UK

You can almost hear the hum of the servers before the screens even flicker green -- that low, electric buzz that now defines both Silicon Valley's night shift and Tokyo's morning bell. Asia opens to a market that has long stopped pretending: AI isn't a sector anymore; it is the market. US futures rose on the twin afterburners of Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), igniting what retail traders love most -- buy the dip after a bruising session. The Nasdaq rebounded 1%, and the S&P 500 contracts floated half a percent higher. Apple delivered its ritual dose of reassurance, a bullish holiday forecast, and a reminder that it still owns the consumer's emotional wallet. Amazon, meanwhile, lit the after-hours sky with 13% gains -- its cloud business finally finding fresh jet fuel after years of coasting. For a night, the market got to believe again. But belief, in 2025, is built on silicon dreams. Meta's (NASDAQ:META) $30 billion bond sale was the reality check -- a stark reminder that the AI arms race is funded by debt, not cash flow. The Mag7, those shimmering avatars of the new liquidity cycle, have added $17 trillion in market cap since April, and yet here we are: investors pacing the corridor, wondering who can keep feeding the beast the longest. The trade has gone from "who builds the fastest" to "who burns the slowest." The nervousness isn't about AI failing -- it's about the bill coming due. Mega-cap balance sheets are being hollowed out by the sheer gravitational pull of AI capex -- the trillion-dollar question isn't whether AI will work, but who survives the training phase. Amazon and Apple gave the illusion of glide, but Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) showed the turbulence underneath. When Trump casually remarked he hadn't discussed Nvidia's Blackwell chip exports with Xi, traders didn't need to check the transcript -- they just hit the sell button. Asia's tape this morning feels more like an algorithm learning to breathe than a market trading on fundamentals. The Nikkei is up 1%, riding the weaker yen and AI halo, while Tokyo CPI came in hotter enough to whisper "December hike" into the BoJ's ear and send the yen flicking higher. Yields are steady, the dollar softer, and gold -- the analog store of value in a digital arms race -- is again holding above $4,000. Central banks continue to buy regardless of price, proving that in a world where data is the new oil, gold is still the old truth. And the Fed? Powell's "hawkish cut" was theatre more than policy -- a performance for both camps of dissenters on the FOMC. Markets have already rewritten the script. Traders are reading the tea leaves, not the minutes. The signal-to-noise ratio is still defined by liquidity flows, not language nuance. The cross-asset alignment -- yields pausing, dollar easing, equities reloading -- suggests the reversion engines may already be humming beneath the surface. We're back in that surreal feedback loop where the market trades AI earnings as a proxy for the macro, and the macro trades Powell's tone as a proxy for AI liquidity. The old sequencing -- Fed then growth then equities -- is inverted. Now, it's AI sentiment → liquidity assumptions → Fed narrative → everything else. In the end, this is no longer about whether AI will transform the economy. It already has -- at least the financial one. The market no longer asks what AI will do for GDP; it asks what AI will do for EPS. The terminal trade isn't in productivity; it's in optionality. So yes, Asia opens higher -- but more importantly, it opens aware. The market isn't waiting for the AI revolution; it's living inside it. Every tick on the Nasdaq is a vote on who runs the next neural empire, and every bond issuance from Big Tech is a new chapter in the "AI-as-liquidity" trade. This could turn out to be either the wildest Santa rally sleigh ride we've ever signed up for -- or the kind that leaves you clutching the reins, praying the reindeer know where the landing strip is.

Jensen Huang-led Nvidia becomes world's first $5 trillion company, outshines Apple and Microsoft

Nvidia has made history by becoming the first company ever to reach a $5 trillion market value, according to Barchart. On Tuesday, Nvidia's stock went up by 5% and Jensen Huang-led Nvidia became the world's first $5 trillion company, outshines Apple and Microsoft at its highest price ever. This happened after the company shared news about new products, partnerships, and big investments at its GTC event in Washington, D.C. That day, Nvidia's total company value reached $4.89 trillion -- very close to $5 trillion. This comes just a few months after it became the first company to cross $4 trillion in July. Nvidia also said it will work with the U.S. Department of Energy to build seven new supercomputers, including one that will use 10,000 of its new Blackwell GPUs. The company also announced a deal with Uber to create a group of self-driving cars, showing that Nvidia is becoming stronger in the driverless car industry. Drug major Eli Lilly is set to receive 1,000 GPUs from Nvidia to aid its AI-led medical manufacturing. This comes in addition to its plans to tie up with Nokia to ramp up its 6G infrastructure, Yahoo reported. ALSO READ: 6 AI startups Jensen Huang and Nvidia engineers have bet on: You will want to know what they are building From teaming up with Palantir and Oracle, along with more 6G collabs with Cisco and T-Mobile, Eli is trying to gain the upper hand in the Medicare and Pharma future which could be dominated by AI. Nvidia also highlighted how its AI technology is being used in robotics, with companies like Amazon, Foxconn, Caterpillar, and Belden using its chips for automation and AI-based manufacturing. The company introduced a new open systems architecture called NVQLink, designed to speed up the development of quantum supercomputers. It will work with Rigetti and IonQ on this project. During his keynote speech, CEO Jensen Huang said Nvidia expects to make $500 billion in GPU sales by the end of 2026. He added that the company already earned over $100 billion in revenue in just the first two quarters of this year. Nvidia could grow even more if the U.S. and China make a new trade deal. This deal would let Nvidia start selling its advanced chips in China again. The company's stock has gone up more than 50% this year and has doubled since April, making it one of the fastest-growing companies in the world. Nvidia's chips are used in big data centers owned by companies like Amazon, Google, and Microsoft, which depend a lot on AI technology. The company has also invested up to $100 billion in OpenAI, one of its most important partners and customers. However, competition in the AI chip market is increasing. Rival AMD has signed big deals with OpenAI for 6 gigawatts of AI processors and with Oracle for 50,000 GPU. ALSO READ: November 2025 Stimulus updates: States sending new relief payments and checks to residents Qualcomm has also entered the race, announcing plans to build AI accelerator chips for data centers. Even Nvidia's top customers -- Amazon, Google, and Microsoft -- are developing their own AI chips, increasing future competition, as per Yahoo Finance. Despite this, Nvidia is pushing forward with its "sovereign AI" strategy, encouraging countries and companies to build their own AI data centers using Nvidia's technology. With all these partnerships, innovations, and record-breaking stock growth, Jensen Huang-led Nvidia has officially outshined Apple and Microsoft, becoming the world's most valuable company at $5 trillion. Q1. Why did Nvidia's value reach $5 trillion? Nvidia's value hit $5 trillion after strong stock growth, major AI partnerships, and new product launches boosted investor confidence. Q2. How did Nvidia become more valuable than Apple and Microsoft? Nvidia's rapid rise came from leading the global AI chip market and expanding deals with big tech and government projects.

The great AI buildout shows no sign of slowing

(Reuters) -A momentous week in the technology sector made it clear there is no sign the boom in building artificial intelligence infrastructure is slowing -- despite the bubble talk. Nvidia, whose processors are the AI revolution's backbone, became the first company to surpass $5 trillion in market value. Microsoft and OpenAI inked a deal enhancing the ChatGPT maker's fundraising ability and OpenAI promptly started laying groundwork for an initial public offering that could value the company at $1 trillion. Amazon said it would cut 14,000 corporate jobs, just days before its cloud unit posted its strongest growth in nearly three years. These developments, along with numerous earnings calls and interviews with executives, make clear that AI has cemented itself as the single biggest catalyst for global corporate investment and the engine of the market rally, even as some question the sustainability of both. SPENDING WITHOUT ENDING Soaring revenue at Microsoft, Alphabet and other technology giants was expected. But more than 100 non-tech global companies noted data centers on quarterly calls this week, including Honeywell, turbine maker GE Vernova, and heavy equipment maker Caterpillar. Sales in Caterpillar's division that supplies data centers jumped 31% in its most recent quarter. "We're definitely really excited about the prime power opportunity with data centers," CEO Joseph Creed said this week. "The AI supply chain now spans power, industrials and cooling technology, and investors are looking at the entire ecosystem rather than just core tech," said Ayako Yoshioka, portfolio manager at Wealth Enhancement Group. Goldman Sachs estimates global AI-related infrastructure spending could reach $3 trillion to $4 trillion by 2030. Microsoft, Amazon, Meta and Alphabet are expected to spend roughly $350 billion combined this year. AI investment is propping up global trade, with about 60% of U.S. data-center capex spent on imported IT equipment, according to Oxford Economics, much of it semiconductors from Taiwan, South Korea and Vietnam. At least two dozen companies representing more than $21 trillion in combined market value reported quarterly earnings or spoke with Reuters about AI in recent days. Many, including Procter & Gamble and Boliden, noted that the hoped-for productivity gains, though uneven, are beginning to show. "We strongly believe the future contribution of artificial intelligence within R&D, within developing innovation, will steadily increase," Schindler CEO Paolo Compagna told Reuters, though he said AI's impact is yet to be seen. The Swiss lift and escalator maker raised its annual margin forecast last week. Year-over-year revenue growth in the U.S. tech sector is up more than 15%, outpacing all other sectors, according to LSEG data. Apple said it was significantly increasing AI investment and Amazon projected capital spending of $125 billion in 2025. WORRIES ABOUT OVERVALUATION Since ChatGPT's debut in 2022, global equity values have climbed 46%, or $46 trillion. One-third of that gain has come from AI-linked companies, according to Bespoke Investment Group. Analysts warn of a quickening replacement cycle for servers, accelerators and chips as each new generation delivers exponential performance gains. The useful life of AI chips is shrinking to five years or less, forcing companies to "write down assets faster and replace them sooner," said UBS semiconductor analyst Tim Arcuri. The surge in AI-related spending has widened the gap between investment and returns, with a Reuters analysis showing that sales-to-capex ratios at major tech firms have fallen sharply as outlays on chips and data centers grow faster than revenue. Capital expenditures represent a larger chunk of cash generated by operating activities for some companies, causing some investor concern. "If progress hasn't been made toward monetization within three years, the market will start asking hard questions," said Sumali Sanyal, senior portfolio manager at investment firm Xponance. Microsoft reported a record $35 billion in capex in its most recent quarter and projected higher spending, prompting Bernstein analyst Mark Moerdler to ask whether the company was spending into a bubble. Microsoft Chief Financial Officer Amy Hood responded that AI-related demand still outpaces Microsoft's spending. "I thought we were going to catch up. We are not," she said. Some companies are financing AI projects with debt. Oracle's $18 billion bond sale last month was one of the largest ever for a tech company, and it looks set to be surpassed by an up to $30 billion bond sale from Meta Platforms. News of its largest ever bond sale knocked Meta's shares down 11% on Thursday. Still, many economists say the AI cycle is far from exhausted. Goldman estimates AI investment is currently less than 1% of U.S. GDP, far below peaks of 2% to 5% seen during the electricity and dot-com booms. "We are in the early innings ... and the pace of AI innovation is the fastest we have seen in decades," said Nick Evans, portfolio manager at Polar Capital Technology Trust. (Reporting by Akash Sriram, Sriparna Roy, Sneha SK and Puyaan Singh in Bengaluru and Jessica DiNapoli in New York, Bernadette Hogg in Gdansk, Poland; Editing by David Gaffen and Rod Nickel)

Nvidia's $5 Trillion Milestone Marks the Dawn of Algorithmic Capitalism | Investing.com UK

The market no longer breathes without Nvidia (NASDAQ:NVDA). It is no longer a stock -- it is the bloodstream, the pulse, and increasingly, the belief system holding the entire equity complex together. Overnight, it crossed the $5 trillion mark -- the first company in history to do so -- and it did it not with a whisper, but a declaration of dominion. Three months ago, $4 trillion felt like a summit. Now, $5 trillion feels like baseline reality. Nvidia has become the gravitational center of modern capitalism: everything orbits around its silicon. The velocity of this ascent defies precedent. It took the company 6,138 days to reach its first trillion, and only 78 days to climb from four to five. Since ChatGPT's launch, the stock has risen twelvefold. Nvidia now towers over entire sectors of the S&P 500 -- its market cap bigger than all utilities, industrials, and consumer staples combined. It's worth more than AMD (NASDAQ:AMD), ASML (NASDAQ:ASML), Broadcom (NASDAQ:AVGO), Intel (NASDAQ:INTC), Micron (NASDAQ:MU), Qualcomm (NASDAQ:QCOM), and TSMC (NYSE:TSM) put together. That's not dominance -- that's empire. And empires have emperors. Jensen Huang now stands as the "godfather of AI," equal parts engineer, evangelist, and geopolitical player. His recent Washington speech wasn't just a corporate showcase -- it was a manifesto. A $500 billion AI chip order book, seven new supercomputers for the US government, and a reaffirmation that Nvidia's Blackwell processors are no longer just products, but instruments of national power. Trump plans to raise those very chips with Xi Jinping this week -- because in 2025, silicon has become diplomacy. Nvidia's growth has reached a scale where its own balance sheet feels more like a sovereign ledger than a corporate one. It has shipped six million Blackwell chips and logged orders for fourteen million more. Its valuation -- thirty-three times forward earnings -- would be considered euphoric for most, yet analysts now call it reasonable. Some even say "cheap." Huang's guidance of half a trillion dollars in sales over the next five quarters has turned Wall Street's usual skepticism into a standing ovation. Nvidia isn't being valued like a company anymore -- it's being priced like a system. Its reach extends far beyond semiconductors. Nvidia has effectively become the capital allocator of the AI century. The company has pledged $100 billion to fund OpenAI's new 10-gigawatt data centers -- underwriting the computational backbone of generative intelligence itself. Its partnerships now stretch across every corporate ecosystem: Oracle (NYSE:ORCL), Nokia (NYSE:NOK), Eli Lilly (NYSE:LLY), and beyond. The firm doesn't just supply chips; it supplies belief. Nvidia is the Nasdaq's north star -- the single stock that defines what progress feels like. Yet there's a paradox at the heart of this story. Nvidia's chips power the very AI systems that trade its own stock. Its hardware feeds the algorithms that read the headlines about Nvidia, model the sentiment, and execute the trades that keep it rising. It's a feedback loop so elegant it borders on absurd -- AI trading on AI, believing in AI, until the reflection becomes indistinguishable from the real thing. Yes, skeptics are circling. They warn of overcapacity, of data centers financed on debt and demand assumptions that defy arithmetic. They compare this to the dot-com years -- the same fevered pitch, the same language of "inevitability." But Nvidia's rise is not about valuation; it's about narrative. It's the purest distillation of the modern market's truth: belief itself is the new collateral. Nvidia isn't just powering the AI revolution -- it is the revolution. The company has become both the engine and the expression of a new financial epoch, where technology, capital, and national strategy converge. The $5 trillion milestone is less a number than a symbol -- the moment when markets stopped trading on fundamentals and started trading on faith in the machine. Whether this ends in triumph or implosion is irrelevant for now. What matters is that we're watching history being priced in real time -- the transfer of market leadership from human hands to algorithmic will. Nvidia is not merely participating in that shift. It is that shift. AI is the market, and the market is AI. And for the moment, they share the same name.

Nvidia breaches $5 trillion in market cap

(Reuters) -Nvidia on Wednesday became the first company to breach $5 trillion in market value, continuing a meteoric rise that has firmly positioned it at the heart of the global AI revolution. Share milestone:--- Nvidia shares hit record high of $209.40 in early trading-- Shares up 1087% pct since the launch of ChatGPT in Nov 2022 MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN THAT HOLDS SHARES IN NVIDIA"Nvidia hitting a $5 trillion market cap is more than a milestone; it's a statement, as Nvidia has gone from chip maker to industry creator." "For investors who think they've missed the boat, even at $5 trillion of market cap, this still isn't an overly expensive stock. The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme." KIM FORREST, CHIEF INVESTMENT OFFICER AT BOKEH CAPITAL PARTNERS IN PITTSBURGH"They have earned this victory lap. At this point, the great AI bubble doesn't look like it's close to popping. And so this is what we get: a $5 trillion company because it makes the things that are driving the AI cycle." "There seems to be a lot of demand for data centers to be built, and that points to Nvidia over and over and over again." RUSS MOULD, INVESTMENT DIRECTOR AT AJ BELL"Nvidia has added $2.5 trillion in market cap since the post-Liberation Day low in April, more than doubling its stock market value. It has been helped by talk of exemptions and revenue-sharing deals when it comes to the tariffs and trade tensions and any successful conclusion to the Asian summit between Presidents Trump and Xi this week could be a further boost to sentiment." MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE"In many ways everything that sort of could have gone right for the firm has gone right over the last sort of 24 hours. We had all of these strategic partnerships being announced yesterday and some very solid guidance from CEO Jensen Huang who was talking about $500 billion worth of business in the next five quarters." "One of the key drivers of whether Nvidia can extend on these gains even more is going to be the CapEx projections from some of these mega cap names. If it's like the second quarter where we have another quarter of just huge increases in capital expenditure, the bulk of which is obviously going to go on NVIDIA chips, then there's absolutely no reason for the rally to run out of steam." ARTHUR R HOGAN III, CHIEF MARKET STRATEGIST, B. RILEY, US"The milestone reinforces the fact that the chip maker is the clear winner at this stage of the AI revolution. Importantly Nvidia's assent has come with defensible valuations. The companies stock trades at 35 times next twelve months earnings estimates, while producing 70% gross margins." "While the $5 trillion milestone seems unfathomable in a historic context, it comes in the wake of a company that has managed to outperform on all metrics, while cutting strategic deals with all of the key players in the sector and successfully navigating the challenging political landscape." DANIELA HATHORN, SENIOR MARKET ANALYST AT CAPITAL.COM, SPAIN"What's been driving Nvidia is, on one hand, general market euphoria and optimism. We've got not only Nvidia but also major equity indices pushing to all-time highs, and I don't think it's luck. It's a combination of fundamental factors: easing inflation and the prospect of lower monetary policy." "But at the same time, we also have an AI-driven capex boom - specifically in the chip sector and the hardware and cloud infrastructure sectors. So, I think you've got a structural growth narrative that extends beyond just a cyclical rebound. To some extent, the AI bubble that's been talked about isn't really a bubble, because it's backed by fundamentals and, frankly, by earnings growth." IPEK OZKARDESKAYA, SENIOR MARKET ANALYST AT SWISSQUOTE BANK, SWITZERLAND "There's tremendous potential for Nvidia to strike more deals--think Nokia, for example. The question isn't if Nvidia will ink new partnerships, but who's next. They're expanding beyond borders, and we believe this international exposure will help ease concerns around circularity." "Nvidia doesn't need Trump's backing the way Intel might. What Nvidia is doing is positioning itself close to the White House for deals that could be costly--like investing in Intel or building chips in Arizona. These are the costs of doing business with Washington. But beyond that, Nvidia doesn't need Trump to generate revenue. It just needs him not to stand in the way." (Reporting by Joel Jose, Avinash P, Akriti Shah, Johann Cherian and Nikhil Sharma in Bengaluru; Editing by Sweta Singh)

AI boom takes Nvidia past $5 trillion valuation - The Economic Times

The milestone underscores the company's swift 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 U.S. and China.Nvidia made history on Wednesday as the first company to reach $5 trillion in market value, powered by a stunning rally that has cemented its place at the center of the global artificial intelligence boom. The milestone underscores the company's swift 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 U.S. and China. Since the launch of ChatGPT in 2022, Nvidia's shares have climbed 12-fold as the AI frenzy propelled the S&P 500 to record highs, igniting a debate on whether frothy tech valuations could lead to the next big bubble. The new milestone, coming just three months after Nvidia breached the $4 trillion mark, would surpass the total cryptocurrency market value and equal roughly half the size of Europe's benchmark equities index, the Stoxx 600 index. "Nvidia hitting a $5 trillion market cap is more than a milestone; it's a statement, as Nvidia has gone from chip maker to industry creator," said Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in the company. "The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme." Shares of the Santa Clara, California-based company rose 4.6% after a string of recent announcements solidified its dominance in the AI race. Huang unveiled $500 billion in AI chip orders on Tuesday and said he plans to build seven supercomputers for the U.S. government. Meanwhile, President Donald Trump is expected to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping on Thursday. Sales of the high-end chip have been a key sticking point between the two sides due to Washington's export controls. Stock surge boosts 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. He is the world's eighth-richest person, per Forbes' billionaire list. Born in Taiwan and raised in the United States from age nine, Huang has led Nvidia since founding it in 1993. Under his leadership, the company's H100 and Blackwell processors have become the engines behind large-language models powering tools such as ChatGPT and Elon Musk's xAI. While Nvidia remains the clear front-runner in the AI race, Big Tech peers such as Apple and Microsoft have also crossed $4 trillion in market value in recent months. Analysts say the rally reflects investor confidence in unrelenting AI spending, though some warn valuations may be running hot. "AI's current expansion relies on a few dominant players financing each other's capacity. The moment investors start demanding cash-flow returns instead of capacity announcements, some of these flywheels could seize," said Matthew Tuttle, CEO of Tuttle Capital Management. Tech companies' heavy weightage in the S&P 500 and Nasdaq 100 gives them broad influence over global markets. Nvidia is due to report quarterly results on November 19. Geopolitical bargaining chip The company's dominance has drawn global regulatory scrutiny, with U.S. export curbs on advanced chips making it a key pawn in Washington's strategy to limit China's access to AI technology. "Nvidia clearly brought their story to D.C. to both educate and gain favor with the U.S. government," said Bob O'Donnell of TECHnalysis Research. "They managed to hit most of the hottest and most influential topics in tech." The developer conference on Tuesday also served as a platform for Huang to walk a geopolitical tightrope. He praised Trump's "America First" policies for accelerating domestic tech investment, while warning that excluding China from Nvidia's ecosystem could limit U.S. access to half of the world's AI developers. Rivals including Advanced Micro Devices and several well-funded startups are seeking to challenge Nvidia's dominance in high-end AI chips, but it remains the industry's top choice.

NVIDIA marches toward $5 trillion valuation as CEO Haung delivers at GTC By Investing.com

Investing.com -- Shares of AI-powerhouse NVIDIA Corporation (NASDAQ:NVDA) surged 5% Tuesday to over $200 per share for the first time after CEO Jensen Huang's keynote address at the semi-annual GTC conference, where he downplayed any concern over an AI bubble. The company's valuation is now nearing $5 trillion. Grabbing investors' attention was news that Huang stated that the company has visibility of more than $500 billion in cumulative Blackwell and Rubin revenue through CY26. While details of the financial disclosure are murky, one analyst suggested that the guidance could indicate $140 billion or more of upside to datacenter GPU revenue over the period. "Our analysis assumes NVDA means they will ship a total of $500bn of Rubin +Blackwell in CY25+CY26. Our total CY25+CY26 DC GPU revenue is for $360bn," Wolfe Research analyst Chris Caso stated. "This disclosure therefore suggests on the order of $140bn upside to datacenter GPU revenue over that period. If our interpretation is correct, this would suggest ~$3 EPS upside to our current $6.20 CY26 estimate." Huang unveiled an AI-native 6G wireless stack built in the U.S. with Nokia, introduced NVQLink to tightly connect quantum processors with GPUs, and announced major Department of Energy partnerships to build seven new AI supercomputers, including the 100,000-GPU Solstice system at Argonne, the largest public scientific AI platform to date. Huang also positioned AI factories as the next generation of data centers, powered by new chips such as BlueField-4 and designed using Omniverse DSX. He highlighted expanding open-source AI model families, new industrial collaborations ranging from Foxconn and Caterpillar to Disney, and major autonomous mobility plans with Uber targeting about 100,000 Level-4 vehicles by 2027. The keynote closed with record-setting financial inference benchmarks from the Grace Hopper Superchip, underscoring NVIDIA's expanding role across science, industry, and real-time AI services.

NVIDIA crosses 5 trillion valuation: How big is it versus other tech companies?

Jensen Huang's chip empire has eclipsed nations and Big Tech alike The year is 2025, and Wall Street has a new black hole. It hums in neon green, devours market caps, and answers only to Jensen Huang. Its name? NVIDIA. What began as a scrappy graphics card company for gamers has turned into a force of economic physics, a celestial body so massive that it's bending the orbit of global finance itself. NVIDIA didn't just cross $5 trillion in market value, it rewrote the rules of what a company can be. This isn't a business anymore; it's a phenomenon. Also read: NVIDIA building a mini-sun for unlimited power: Fusion energy project explained If NVIDIA were a country, its flag would shimmer with circuits, and its GDP would be measured in teraflops. With a market capitalization of $5 trillion, "Team Green" now sits shoulder-to-shoulder with entire civilizations. The comparisons no longer sound hyperbolic, they're factual. That's not just corporate success, that's geoeconomic distortion. NVIDIA's gravity has become inescapable. Every investor, policymaker, and CEO now orbits around its chips, its software stack, and its CEO's signature leather jacket. The message from the markets is clear: the future of AI is worth more than the industrial past of nations. For most of the 21st century, Apple and Microsoft ruled the trillion-dollar club. They were the twin suns of the tech universe. Now, NVIDIA has outshone them both, and burned a trillion dollars brighter. At over $5 trillion, NVIDIA stands a full $1 trillion ahead of its nearest rivals. Apple ($4.0T) and Microsoft ($4.03T) together barely outweigh one NVIDIA. The company that once made "graphics cards for gamers" now commands more value than the kings of software and smartphones combined. Also read: NVIDIA's investment in Nokia: How it will impact future of 6G telecom networks Amazon, at $2.44 trillion, looks almost humble by comparison. You could buy all of Amazon - warehouses, web services, and all - and still have enough leftover cash to pick up nearly all of Meta Platforms ($1.89T). The FAANG era didn't fade quietly; it was swallowed whole by the AI singularity. NVIDIA's ascent marks a tectonic shift in capitalism's hierarchy. The golden age of software is over, we're in the platinum age of silicon. While others chased subscriptions, operating systems, and social graphs, NVIDIA spent the past decade building the engines of intelligence, the chips that run every large language model, every autonomous car, every synthetic simulation of reality. It isn't selling a product; it's selling the infrastructure of thought. That's why the market treats NVIDIA not as a company, but as a civilization. Its valuation is a bet that AI will remake everything, from how we work to how we wage wars. Every datacenter built today hums to the rhythm of NVIDIA's silicon heartbeat. In 2025, the world's financial atlas has redrawn itself around a green dot. NVIDIA's influence now stretches far beyond semiconductors - into geopolitics, supply chains, and national security. Governments court Jensen Huang the way they once courted oil magnates. The old economy ran on fuel. The new one runs on compute and NVIDIA owns the refinery. NVIDIA isn't a company anymore. It's the planet everything else now orbits.