Nvidia’s value has entered a new stratosphere. The Silicon Valley chipmaker’s market cap blasted past $5 trillion on Wednesday, a world first for any company. The $5.05 trillion valuation, reached as shares hit $207.86, highlights the sheer scale of the AI boom.
The speed of this ascent is what has stunned investors, with the company adding $1 trillion in value in just three months. This explosive growth is powered by “ravenous” demand for its processors, which are the undisputed leader for AI applications.
To put the $5 trillion figure in context, Nvidia is now more valuable than the individual gross domestic products of India, Japan, and the UnitedKingdom. The company has left all chip competitors far behind.
CEO Jensen Huang is feeding this growth with a $500 billion order book and a slew of deals. A $100 billion partnership with OpenAI, a robotaxi deal with Uber, and a 6G deal with Nokia have all solidified its market position.
This AI craze is being called the next iPhone moment. However, unlike the iPhone, the AI boom is facing serious bubble concerns. The Bank of England and the IMF have both warned of inflated stock prices, and critics point to the “circular” Nvidia-OpenAI deal as a major red flag.
