Nvidia Surges Past $5 Trillion Market Cap as CEO Huang Reveals $500 Billion Order Backlog

Historic Market Milestone

Nvidia has achieved a remarkable feat by crossing the $5 trillion market capitalization threshold, becoming the most valuable semiconductor company in history. The stock surged 4% on Monday to reach this unprecedented milestone, adding nearly $100 billion in market value within just three trading days since first closing above $5 trillion last Wednesday 1

1

. This meteoric rise has been fueled by increased AI spending commitments from major cloud providers and significant government partnerships worldwide.

Massive Order Backlog Revealed

At Nvidia's GTC event in Washington, D.C., CEO Jensen Huang delivered what analysts are calling "fantastic news" by announcing that the company has secured $500 billion in orders for its current-generation Blackwell processors and upcoming Rubin GPUs through the end of 2026 5

5

. This figure dramatically exceeds Wall Street's revenue projections of $277 billion for Nvidia's fiscal year 2027, suggesting the company could potentially double its stock value by the end of 2026.

The announcement comes as Nvidia's data center business, which accounts for 88% of the company's revenue, is projected to generate $170 billion in fiscal 2026. With the massive order backlog, analysts estimate the data center segment could experience a 165% surge by 2027, potentially reaching $450 billion in annual revenue 3

3

.

Global Infrastructure Expansion

Nvidia's growth trajectory is being supported by significant international partnerships and government initiatives. The company announced plans to expand South Korea's AI infrastructure with over 250,000 Nvidia GPUs across sovereign clouds and AI factories, involving key South Korean companies including Samsung and Hyundai 1

1

. Additionally, Nvidia and Deutsche Telekom are building a €1 billion data center in Germany, set to begin operations in early 2026 4

4

.

Industry Validation and Future Outlook

SoftBank CEO Masayoshi Son's prescient assessment from October 2024 that Nvidia was "undervalued" has proven remarkably accurate. Son projected that the rise of artificial superintelligence could require $9 trillion in cumulative capital expenditure, with four major tech companies potentially earning $4 trillion in annual profit from the AI revolution 2

2

.

Bank of America analysts have addressed growing AI skepticism by maintaining their buy rating and $275 price target for Nvidia, arguing that the skepticism is "healthy but overstated." They noted that Nvidia's dominant 90% market share in AI chips and the disclosed $500 billion in orders indicate the stock can grow sales and earnings by 50% and 70% year-over-year respectively 4

4

.