Nvidia has become the biggest beneficiary of the ongoing AI boom, achieving a historic milestone as the first public company to pass a five trillion dollar market cap. This achievement was driven by a more than five percent rise in its shares on Wednesday. The surge followed news that former U.S. President Donald Trump expects to discuss the company’s Blackwell chips with Chinese President Xi Jinping.
Investor enthusiasm was further fueled by comments from Nvidia CEO Jensen Huang. He stated that the company anticipates five hundred billion dollars in AI chip sales and revealed plans to build seven new supercomputers for the United States. These supercomputers, focused on areas like security, energy, and science, will require thousands of Nvidia GPUs. In a separate announcement, Nvidia confirmed a one billion dollar investment in Nokia. This partnership aims to use Nokia products to help communication service providers launch AI-native 5G-Advanced and 6G networks on Nvidia platforms.
This five trillion dollar valuation arrives just three months after Nvidia became the first company to cross the four trillion dollar mark. The company’s stock has surged more than fifty percent this year, propelled by immense demand for its graphics processing units. These GPUs are essential for training large language models and other AI tasks in data centers worldwide. The chips are highly valuable due to their scarcity, and Nvidia’s strategy of integrating them directly into expanding data center operations helps maintain that status.
The rise of Nvidia is part of a broader tech stock surge this year, driven by optimism that AI technology will revolutionize global industries, much like the internet did. Investors have been encouraged by a series of multi-billion-dollar infrastructure deals, many centered on Nvidia, which aim to build the computing capacity needed for advanced AI models. In September, Nvidia announced a plan to invest up to one hundred billion dollars in OpenAI, another major player in the AI boom. Both companies intend to deploy ten gigawatts worth of Nvidia systems to power OpenAI’s operations.
With a market capitalization of five trillion dollars, Nvidia is now worth more than the aggregated stock markets of every country apart from the United States, China, and Japan.