Nvidia achieved a $5 trillion market capitalization, becoming the first public company to reach this valuation, as its shares rose 5.6% Wednesday to $212.19.
The company’s stock surge follows news regarding U.S. President Donald Trump’s anticipated discussion of Nvidia’s Blackwell chips with Chinese President Xi Jinping on Thursday.
Nvidia CEO Jensen Huang stated the company expects $500 billion in AI chip sales. Nvidia is also constructing seven new supercomputers for the U.S. in security, energy, and science sectors, requiring thousands of Nvidia GPUs.
On Tuesday, Nvidia announced a $1 billion investment in Nokia. This investment aims to integrate Nokia products to facilitate communication service providers in launching AI-native 5G-Advanced and 6G networks on Nvidia platforms.
This milestone arrives three months after Nvidia surpassed the $4 trillion valuation. The stock has increased by over 50% this year, driven by demand for its graphics processing units (GPUs). These GPUs are utilized in data centers for tasks such as training large language models and inference.
The scarcity of Nvidia’s GPUs contributes to their value, maintained by their direct integration into data center expansion.
Optimism regarding AI technology’s potential to revolutionize industries has fueled a broader surge in tech stocks this year. Investors have noted multibillion-dollar deals, many involving Nvidia, fostering data center and infrastructure development for AI model compute capacity.
In September, Nvidia committed to investing up to $100 billion in OpenAI in the coming years. Both companies intend to deploy 10GW of Nvidia systems for OpenAI’s operations.
Nvidia’s market capitalization exceeds the aggregated stock markets of all countries except the United States, China, and Japan.
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