Nvidia Becomes World’s First $5 Trillion Company Amid Soaring AI Demand
Nvidia has reached a historic milestone, becoming the first company in the world to hit a $5 trillion market valuation, cementing its position as the undisputed leader of the artificial intelligence (AI) revolution.
The U.S.-based semiconductor giant, once known primarily for its gaming graphics chips, has rapidly evolved into the backbone of global AI infrastructure. Its meteoric rise reflects the ongoing frenzy surrounding AI technologies, which continue to drive record demand for Nvidia’s high-performance processors.
Nvidia first crossed the $1 trillion mark in June 2023 and reached $4 trillion just three months ago. On Wednesday morning, its shares surged by 5.6% to over $212, boosted by optimism about its strong sales in China despite geopolitical tensions.
With this latest valuation, Nvidia has now surpassed the GDP of every country except the United States and China, according to World Bank data. Its worth also exceeds entire sectors of the S&P 500, underscoring its dominance in the global market.
The company’s rise has been fuelled by partnerships with leading AI developers such as OpenAI and Oracle, whose products rely on Nvidia’s cutting-edge chips. The firm’s success has also powered a wider rally across the technology sector, with Microsoft and Apple both recently surpassing $4 trillion in market value.
AI-related companies have accounted for around 80% of U.S. stock market gains this year, according to analysts, highlighting the extent of investor enthusiasm.
However, some experts warn that the surge may signal the formation of an AI-driven financial bubble. The Bank of England, the International Monetary Fund, and J.P. Morgan CEO Jamie Dimon have all urged caution, with Dimon noting that “the level of uncertainty should be higher in most people’s minds.”
Danni Hewson, head of financial analysis at AJ Bell, described Nvidia’s valuation as “a sum so vast the human brain can’t properly get a handle on it,” adding that the market “seems keen to march on regardless.”
Critics have also raised concerns about “financial engineering” within the AI ecosystem, as major firms increasingly invest in one another. Notably, Nvidia recently committed $100 billion to OpenAI, intensifying scrutiny over how intertwined the sector’s finances have become.
Despite global trade tensions — particularly between the U.S. and China — Nvidia’s momentum has shown little sign of slowing. Following the lifting of a U.S. ban on selling advanced chips to China earlier this year, the company agreed to pay 15% of its Chinese revenues to the U.S. government under a new regulatory arrangement.
Nvidia CEO Jensen Huang, now a cult figure in the tech world, said on Tuesday that the company expects $500 billion worth of AI chip orders through next year.
Nvidia’s shares have already climbed more than 50% in 2025 alone, and with AI adoption accelerating across industries, the company’s $5 trillion milestone may just be the beginning of an even larger transformation in global technology markets.
