Nvidia is now worth $5 trillion, a new record amid global AI boom

The Wall Street milestone underscores the company's swift transformation from a niche graphics-chip designer into the backbone of the global AI industry.

Nvidia made history on Wednesday as the first company to reach $5 trillion in market value, powered by a rally that has cemented its place at the center of the global artificial intelligence boom.

The Wall Street 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 U.S. 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.

“Nvidia hitting a $5 trillion market cap is more than a milestone; it’s a statement, as Nvidia has gone from chip maker to industry creator,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in the company.

“The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme.”

After a string of recent announcements solidified its dominance in the AI race, shares of the Santa Clara, California-based company ended Wednesday’s session up 3% at $207.04, giving it a stock market value of $5.03 trillion.

Huang announced $500 billion in AI chip orders on Tuesday and said he plans to build seven supercomputers for the U.S. government.