Nvidia has officially become the first company in the world to achieve a $5 trillion valuation, just three months after it made history by surpassing the $4 trillion market cap milestone.
In comparison, Nvidia’s valuation exceeds the GDPs of India, Japan, and the United Kingdom, as reported by the International Monetary Fund (IMF).
As the U.S. stock market opened on Wednesday, Nvidia’s stock surged to $207.86, boasting 24.3 billion outstanding shares and a market cap of $5.05 trillion. The company’s significant demand for chips, which are essential for advanced artificial intelligence products and software, has played a crucial role in its rapid stock price increase since early 2023.
This week, the overall U.S. stock market has reached several record highs, driven by increased investment in artificial intelligence.
On Tuesday, NVIDIA CEO Jensen Huang announced a massive $500 billion chip order. The company also disclosed a partnership with Uber focused on robotaxis and a $1 billion collaboration with Nokia to advance 6G technology. Furthermore, Nvidia is teaming up with the U.S. Department of Energy to develop seven new AI supercomputers.
Last month, Nvidia revealed plans to invest $100 billion in OpenAI, part of a partnership that will enhance the computing resources for users of the ChatGPT AI chatbot with at least 10 gigawatts of Nvidia AI data centers.
In August, Huang mentioned that Nvidia was discussing with the Trump administration the development of new computer chips tailored for China. Donald Trump stated on Air Force One that he would engage in discussions with Chinese President Xi Jinping regarding Nvidia chips on Thursday.
Reaching this new milestone highlights the impact of the artificial intelligence boom, deemed one of the most significant technological shifts since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago. Apple capitalized on the iPhone’s success and became the first publicly traded company to hit a $1 trillion valuation, then $2 trillion, and later $3 trillion.
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However, there are growing worries over a potential AI bubble, with Bank of England officials cautioning earlier this month about the increasing risk that tech stocks, buoyed by the AI surge, could face a downturn. The head of the IMF has echoed similar concerns.
Source: www.theguardian.com
