Today's Edition
(REUTERS)
Nvidia made history on Wednesday as the first company to reach $5 trillion in market value, powered by a stunning rally that has cemented its place at the centre of the global artificial intelligence boom.
The milestone underscores the company's swift transformation from a niche graphics-chip designer into the backbone of the global AI industry, turning CEO Jensen Huang into a Silicon Valley icon and making its advanced chips a flashpoint in the tech rivalry between the US and China.
Since the launch of ChatGPT in 2022, Nvidia's shares have climbed 12-fold as the AI frenzy propelled the S&P 500 to record highs, igniting a debate on whether frothy tech valuations could lead to the next big bubble.
The new milestone, coming just three months after Nvidia breached the $4 trillion mark, would surpass the total cryptocurrency market value and equal roughly half the size of Europe's benchmark equities index, the Stoxx 600 index.
Shares of the Santa Clara, California-based company rose 3.5% after a string of recent announcements solidified its dominance in the AI race. Huang unveiled $500 billion in AI chip orders on Tuesday and said he plans to build seven supercomputers for the US government.
Meanwhile, President Donald Trump is expected to discuss Nvidia's Blackwell chip with Chinese President Xi Jinping on Thursday. Sales of the high-end chip have been a key sticking point between the two sides due to Washington's export controls.
At current prices, CEO Huang's stake in Nvidia would be worth about $177.3 billion, according to regulatory filings and Reuters calculations. He is the world's eighth-richest person, per Forbes' billionaire list.
Raised in the United States from age nine, Huang has led Nvidia since founding it in 1993. Under his leadership, the company's H100 and Blackwell processors have become the engines behind large-language models powering tools such as ChatGPT and Elon Musk's xAI.
While Nvidia remains the clear front-runner in the AI race, Big Tech peers such as Apple and Microsoft have also crossed $4 trillion in market value in recent months.
Analysts say the rally reflects investor confidence in unrelenting AI spending, though some warn valuations may be running hot.
Tech companies' heavy weightage in the S&P 500 and Nasdaq 100 gives them broad influence over global markets.
Nvidia is due to report quarterly results on November 19.
Rivals including Advanced Micro Devices and several well-funded startups are seeking to challenge Nvidia's dominance in high-end AI chips, but it remains the industry's top choice.
