Nvidia Becomes First Company to Reach $5 Trillion Market Value

BEIJING, China — Nvidia Corp. made history on Wednesday by becoming the first company to reach a market capitalization of $5 trillion, as its stock price surged more than 3% in early trading.

The milestone solidifies Nvidia’s status as the most valuable company in the world, surpassing Apple Inc. and Microsoft Corp., each valued at around $4 trillion. This surge follows remarks made by CEO Jensen Huang during the GTC developer conference in Washington, D.C., where he unveiled significant demand for the company’s AI chips.

“I think we are probably the first technology company in history to have visibility into half a trillion dollars [in revenue],” Huang stated, referring to current and future orders for Nvidia’s Blackwell and Rubin chip architectures, expected through the end of 2026.

The announcement contributed to an increase in Nvidia’s stock, which has risen more than 14% in the past five days alone. The company’s stock has benefited from Huang’s confidence in Nvidia’s future, with strong order visibility adding to investor optimism.

Further momentum came from statements by President Donald Trump, who indicated plans to discuss Nvidia’s Blackwell chip with Chinese President Xi Jinping. Trump referred to the processor as “super-duper” and “probably 10 years ahead of any other chip.”

Nvidia has faced challenges in the Chinese market, with its share plummeting from 95% to zero because of U.S. export controls and Chinese restrictions. The company reported just $2.8 billion in revenue from China last quarter, a sharp drop from $15.5 billion previously.

Earlier this month, Huang confirmed the company’s market share drop and announced Nvidia’s plans to push its U.S. manufacturing. He stated that Nvidia has shipped six million Blackwell chips in the past year and projects an additional 14 million shipments over the next five quarters.

In line with its growth strategy, Nvidia has launched partnerships with various companies, including Nokia Corp. to develop telecommunications equipment for 5G networks and with Oracle to create AI supercomputers for national projects.

Nvidia’s rise in market value has been impressive; it surpassed $1 trillion in June 2023, reached $2 trillion in February 2024, and hit $3 trillion in June 2024. The company was valued at about $400 billion prior to the debut of OpenAI’s ChatGPT in late 2022.

The company’s dominance in the AI space, with an estimated 90% market share for AI chips utilized by major tech firms like Microsoft and Amazon, has played a crucial role in its rapid ascent.

Nvidia’s shares closed above $200 for the first time on Tuesday, and the stock continues to draw investor attention as it is projected for noteworthy growth in the near future.