CALIFONIA: Nvidia on Wednesday became the first publicly traded company to reach a $5 trillion market valuation, underscoring investors’ growing confidence in the transformative power of artificial intelligence.
The chipmaker’s shares jumped $9.08, or 4.5%, to $210.11 during early trading, pushing its market capitalization to $5.1 trillion.
The milestone comes less than four months after Nvidia crossed the $4 trillion mark in July, highlighting the company’s meteoric rise in the AI-driven tech landscape.
Based in Santa Clara, California, Nvidia has benefited immensely from the global surge in demand for its graphics processing units (GPUs) the backbone of AI systems powering everything from large language models to video games.
Its stock has already soared 51% this year, buoyed by the company’s expanding product lineup, including an upgraded quantum computing platform, and major partnerships with AI pioneers such as OpenAI and Palantir.
Nvidia’s chips remain the new oil or gold in this world for the tech ecosystem, as there is only one chip in the world fueling this AI revolution and it’s Nvidia, said Dan Ives, a senior analyst at Wedbush Securities, in a research note dated October 28.
Nvidia’s new valuation milestone highlights how artificial intelligence has reshaped global markets, marking one of the most significant technological shifts since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago.
Apple’s dominance in the smartphone era saw it become the first company to reach valuations of $1 trillion, $2 trillion, and eventually $3 trillion. Now, Nvidia’s ascent signals a new phase in the digital economy one powered by AI chips instead of smartphones.
As investors continue to bet on AI’s long-term potential, Nvidia’s rise cements its status as the driving force of the next great tech revolution.
