Nvidia has made history as the world’s first company to reach a $5 trillion market valuation, cementing its dominance in the artificial intelligence revolution. The milestone, achieved at Wednesday’s market open, highlights the unprecedented demand for the company’s AI chips that power much of the global technology ecosystem.
The chipmaker’s shares rose 3% after trading began, continuing a remarkable run that has seen Nvidia’s stock surge nearly 50% in 2025. The company crossed the $4 trillion mark just three months ago, after taking roughly 13 months to climb from $3 trillion to $4 trillion. Nvidia’s rapid growth has placed it consistently among the top performers in the S&P 500, driven by soaring investment in artificial intelligence across industries.
Investor optimism also grew ahead of expected discussions between U.S. President Donald Trump and Chinese leader Xi Jinping, which could expand Nvidia’s access to China’s lucrative market for high-end AI chips. On Tuesday, CEO Jensen Huang outlined an ambitious vision for Nvidia’s future during his keynote at the company’s GTC AI conference in Washington, describing how its chips will power everything from autonomous vehicles to robotic manufacturing systems.
Nvidia’s processors are critical to the data centers that support the AI revolution, and the company’s influence continues to expand as it invests heavily in key partners. Recently, Nvidia and OpenAI announced a massive collaboration that includes billions of dollars in chip purchases and a $100 billion long-term investment from Nvidia. The company also pledged $5 billion to bolster struggling rival Intel.
While Nvidia’s staggering growth has captivated markets, some analysts warn of overheating in the AI sector. The pace of investment, coupled with uncertain returns, has fueled speculation about a potential bubble. Still, Nvidia remains confident. During its August earnings call, executives projected that the company could benefit from up to $4 trillion in AI infrastructure spending by the end of the decade.
In its most recent quarter, Nvidia reported nearly $26 billion in net income, underscoring the scale of its profitability. As another tech giant, Apple, crossed the $4 trillion threshold this week, Nvidia’s record-breaking valuation reinforces the central role artificial intelligence now plays in shaping the global economy.
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