Nvidia has become the first company in history to reach a $5 trillion market value. The company’s rapid rise highlights the global appetite for its artificial intelligence chips, which now drive much of the world’s data processing.
Nvidia achieved the $5 trillion milestone on Wednesday morning, just three months after it crossed $4 trillion. It took the company about 13 months to move from $3 trillion to $4 trillion, showing an accelerated pace of growth.
The stock (NVDA) climbed 3% at Wednesday’s open and has gained roughly 50% in 2025. Nvidia has consistently ranked among the top performers in the S&P 500 as investors pour money into AI technologies.
Investor optimism grew after reports of possible talks between U.S. President Donald Trump and Chinese President Xi Jinping. The discussions could lead to broader access for Nvidia’s high-end AI chips in China. CEO Jensen Huang also fueled excitement during his keynote at the GTC AI conference in Washington, outlining a future where Nvidia chips power cell towers, robotic factories, and autonomous vehicles.
Nvidia’s hardware runs the data centers that enable most AI applications today. The company’s influence extends beyond chipmaking, as it invests heavily in firms driving the AI revolution.
This week, Apple also crossed the $4 trillion threshold, signaling that the iPhone brand remains a strong force in the market, despite lagging in AI innovation.
Nvidia recently deepened its partnership with OpenAI. The deal involves ChatGPT’s parent company buying billions of dollars in Nvidia chips, while Nvidia will invest $100 billion in OpenAI over time. The chipmaker also announced a $5 billion investment in Intel, signaling its long-term confidence in the semiconductor sector.
Still, the massive spending and rapid market growth have sparked fears of an AI bubble. Critics warn that such valuations may not match future earnings.
During Nvidia’s August earnings call, executives said the company expects to benefit from nearly $4 trillion in global AI infrastructure spending by 2030. In its latest quarter, Nvidia reported close to $26 billion in net income — a figure that underscores its dominance in the new AI economy.
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