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NVIDIA On Wednesday, it created history by becoming the first company to reach a market value of $5 trillion.
The milestone was driven by a stunning rally that has cemented its place at the global center artificial intelligence Bounce.
The achievement underscores the company’s rapid transformation from a niche graphics-chip designer to 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 technological rivalry. We And China.
Since the launch of ChatGPT in 2022, Nvidia shares The AI frenzy has sent the S&P 500 to record highs, sending it up 12-fold, sparking debate over whether frothy tech valuations could lead to the next big bubble.
The new milestone, coming just three months after Nvidia crossed the $4 trillion mark, would exceed the total cryptocurrency market cap and equal almost half the size of Europe’s benchmark equity index, the Stoxx 600 index.
“Nvidia reaching $5 trillion market cap is more than a milestone; it’s a statement as Nvidia transitions from chip maker to industry leader,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, who owns shares in the company.
“The market is underestimating the scale of the opportunity, and Nvidia remains one of the best players to play the AI theme.”
Santa Clara shares, CaliforniaThe based company rose 4.6% after a series of recent announcements solidified its dominance in the AI race.
Huang disclosed a $500 billion AI chip order on Tuesday and said he planned to build seven supercomputers for the US government.
Meanwhile, President Donald Trump is expected to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping on Thursday. High-end chip sales have been a sticking point between the two sides because of Washington’s export controls.
Huang’s wealth increases due to stock surge
At current prices, CEO Huang’s stake in Nvidia would be worth about $179.2 billion, according to regulatory filings and Reuters calculations. According to the Forbes billionaire list, he is the eighth richest person in the world.
Born in Taiwan and raised in the United States from the age of nine, Huang has led Nvidia since its founding in 1993. Under his leadership, the company’s H100 and Blackwell processors have become the engines behind big-language model powering tools like ChatGPT and Elon Musk’s XAI.
While Nvidia remains the clear front runner in the AI race, Big Tech peers like Apple and Microsoft have also surpassed $4 trillion in market value in recent months.
Analysts say the rally reflects investor confidence in continued AI spending, though some caution that valuations could be overheated.
Matthew Tuttle, CEO of Tuttle Capital Management, said, “The current expansion of AI depends on a few major players financing each other’s capabilities. As investors begin to demand cash-flow returns rather than capability announcements, some of these flywheels may seize up.”
The heavy weighting of tech companies in the S&P 500 and Nasdaq 100 gives them broad influence on global markets.
Nvidia is scheduled to report quarterly results on November 19.
geopolitical bargaining chip
The company’s dominance has drawn global regulatory scrutiny, with US export restrictions on advanced chips making it a key pawn in Washington’s strategy to limit China’s access to AI technology.
Bob O’Donnell of Technalysis Research said, “Nvidia clearly brought its story to DC to educate and lobby the US government.” “They managed to hit the hottest and most impactful topics in technology.”
The developer conference on Tuesday also served as a platform for Huang to walk the geopolitical tightrope.
He praised Trump’s “America First” policies to accelerate 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 trying to challenge Nvidia’s dominance in high-end AI chips, but it remains the industry’s top choice.