Nvidia (NVDA.O) made history on Wednesday, becoming the first company ever to reach a $5 trillion market valuation — a jaw-dropping milestone driven by the relentless global boom in artificial intelligence.
Once a niche designer of graphics chips, Nvidia has transformed into the beating heart of the AI revolution, powering everything from generative models to massive data centers. This meteoric ascent has turned CEO Jensen Huang into a Silicon Valley legend and placed Nvidia’s cutting-edge chips at the center of the U.S.–China tech rivalry.
Since the launch of ChatGPT in 2022, Nvidia’s shares have skyrocketed over 1,100%, propelling the S&P 500 to record highs and sparking debates over whether this AI-fueled euphoria could morph into the next tech bubble.
The $5 trillion mark comes barely three months after Nvidia crossed $4 trillion — a valuation now surpassing the entire cryptocurrency market and rivaling half of Europe’s benchmark Stoxx 600 Index.
“Nvidia hitting a $5 trillion market cap isn’t just a milestone; it’s a message,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “The company has evolved from chipmaker to industry creator — and the market still underestimates its potential.”
Nvidia’s shares surged 4.6% following major announcements that reaffirmed its AI dominance. Huang recently revealed $500 billion in AI chip orders and plans to construct seven supercomputers for the U.S. government. Meanwhile, geopolitical attention remains fixed on Nvidia’s Blackwell chips, as former U.S. President Donald Trump is set to discuss their export implications with Chinese President Xi Jinping on Thursday.
While Nvidia leads the AI charge, fellow tech titans Apple and Microsoft have also joined the exclusive $4 trillion club, underscoring Wall Street’s unwavering confidence in the AI sector. Yet, some analysts caution that valuations may be heating up too fast.
“AI’s growth is powered by a few giants financing each other’s capacity,” warned Matthew Tuttle, CEO of Tuttle Capital Management. “Once investors demand cash-flow returns instead of capacity promises, some of those engines could stall.”
As one of the heaviest hitters in the S&P 500 and Nasdaq 100, Nvidia’s performance continues to shape global market sentiment. The company is set to release its next quarterly results on November 19, with investors eagerly awaiting whether the AI titan can keep rewriting history.
