A flurry of high-profile deals has propelled Nvidia to a historic $5.05 trillion market capitalization, making it the world’s first $5 trillion company. The chipmaker’s value, which has grown by $1 trillion in just three months, is built on its absolute dominance in the AI chip market.
The company’s CEO, Jensen Huang, recently unveiled a $500 billion order book, signaling that the intense demand is not slowing down. This was followed by a string of major announcements. Nvidia is partnering with Uber on robotaxis and investing $1 billion in Nokia to co-develop 6G technology.
Nvidia is also solidifying its role as the key technology provider for both government and private AI. The company is working with the US Department of Energy to build seven new AI supercomputers. In the private sector, it announced a massive $100 billion investment in OpenAI to add 10 gigawatts of AI datacenter capacity, a critical step for the ChatGPT owner’s expansion.
This intense activity has captured the attention of President Donald Trump, who praised CEO Jensen Huang and disclosed his own financial stake in the company. Trump also hinted at a policy shift that could allow some chip sales to China, further exciting investors.
This AI-driven phenomenon is being compared to the iPhone’s revolutionary impact, which made Apple the first company to hit $1T, $2T, and $3T. However, the sheer speed of Nvidia’s rise has regulators worried about a bubble, especially given that many companies are reportedly failing to see financial returns on their AI pilot programs.