NVIDIA Shatters Records with Unprecedented $5 Trillion Valuation

NVIDIA etched its name in Wall Street history on Wednesday, becoming the first company ever to reach a market capitalization of $5 trillion. The chipmaker’s stock surged 3% to close at $202.49, marking this unprecedented milestone just three months after crossing the $4 trillion mark.

The surge was sparked by CEO Jensen Huang’s announcement of $500 billion in anticipated AI chip sales through 2026 and plans to construct seven supercomputers for the U.S. government. NVIDIA’s dominance in the realm of artificial intelligence hardware has rendered it indispensable to tech titans such as Microsoft, Google, and OpenAI.

This monumental achievement has emerged amidst concerns about potential AI bubble risks. Some analysts have issued warnings that valuations may be overheating. Remarkably, NVIDIA’s market cap now surpasses the GDP of every country, with the exception of the U.S. and China. It also equates to roughly half the size of Europe’s benchmark equity index.

Source: CNBC