Nvidia has reached a historic peak on Wall Street, becoming the first company ever to be valued at over $5 trillion. The chipmaker’s market cap hit $5.05 trillion on Wednesday as shares climbed to $207.86, driven by a powerful, AI-focused stock market rally.
This milestone, which comes just three months after the company crossed the $4 trillion mark, illustrates the incredible speed of the AI boom. The “ravenous appetite” for Nvidia’s cutting-edge chips has made it more valuable than the individual economies of India, Japan, or the UK.
The company’s growth is backed by a $500 billion order book. It is also expanding into new frontiers, with a robotaxi partnership with Uber, a $1 billion investment in Nokia for 6G, and a deal with the US Department of Energy to build seven new AI supercomputers.
A massive $100 billion investment in OpenAI further cements its dominance, as the funds will be used to build 10 gigawatts of Nvidia-powered datacenters.
While investors celebrate this new peak, some economists are warning of a steep drop. The IMF and Bank of England have flagged the risk of an AI bubble, pointing to “circular” investments and the fact that most businesses are not yet seeing any revenue returns from their AI projects.