AI chipmaker Nvidia is the first $5 trillion company

Published: Wednesday, October 29, 2025 at 1:59 pm

Nvidia Soars to $5 Trillion Valuation, Driven by AI Boom

Silicon Valley chipmaker Nvidia has achieved a historic milestone, becoming the first company to reach a $5 trillion valuation. This achievement comes just three months after the company surpassed the $4 trillion mark, highlighting the rapid growth fueled by the burgeoning artificial intelligence (AI) sector.

The company's meteoric rise is largely attributed to the insatiable demand for its chips, which are essential for powering AI applications. Nvidia's stock price has surged since early 2023, with shares reaching $207.86 in early trading on Wednesday. With 24.3 billion shares outstanding, the company's market capitalization now stands at $5.05 trillion. This valuation surpasses the gross domestic product (GDP) of major economies like India, Japan, and the United Kingdom.

Nvidia's CEO, Jensen Huang, recently disclosed $500 billion in chip orders, further underscoring the company's strong position in the market. The company is also expanding its reach through strategic partnerships and investments. Nvidia has partnered with Uber on robotaxis, invested $1 billion in Nokia to collaborate on 6G technology, and is working with the Department of Energy to build seven new AI supercomputers. Additionally, Nvidia is investing $100 billion in OpenAI to boost computing power for the AI chatbot ChatGPT.

The rapid growth of AI and the associated surge in tech stock valuations have raised concerns among financial experts. Officials at the Bank of England and the head of the International Monetary Fund have expressed concerns about a potential AI bubble, warning of the risk of a market correction.

Nvidia is also navigating geopolitical considerations. CEO Huang has discussed a potential new computer chip designed for China with the Trump administration. President Donald Trump has indicated he will discuss Nvidia's chips with Chinese President Xi Jinping.

BNN's Perspective:

While Nvidia's success is undeniable, the rapid growth of the AI sector warrants cautious optimism. The potential for innovation and economic growth is significant, but it's crucial to monitor market valuations and ensure responsible investment practices to mitigate the risk of a bubble. The company's global partnerships and geopolitical considerations add another layer of complexity to its future.

Keywords: Nvidia, AI, artificial intelligence, $5 trillion, stock price, chipmaker, Jensen Huang, OpenAI, Uber, Nokia, 6G, Department of Energy, market capitalization, tech stocks, AI bubble, China, Donald Trump, Xi Jinping

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