Nvidia’s market value has swelled to a size that rivals entire nations. The chipmaker became the world’s first $5 trillion company on Wednesday, with its valuation of $5.05 trillion now exceeding the individual GDPs of India, Japan, and the United Kingdom, as per IMF figures. This milestone highlights a massive upheaval in the tech landscape.
The company’s astronomical rise is pinned on its dominance of the artificial intelligence chip market. As the tech industry pivots to an AI-first future, demand for Nvidia’s cutting-edge processors has exploded. This surge has been rapid, with the company adding $1 trillion in value in just the last three months.
This growth is supercharged by massive new deals. CEO Jensen Huang announced a $500 billion order book, alongside a major partnership with OpenAI. Nvidia will invest $100 billion in the ChatGPT owner, which will use the funds to build out 10 gigawatts of Nvidia-powered AI datacenters to fuel its own expansion.
The company’s influence extends to Washington. President Donald Trump has been a vocal supporter, lauding CEO Jensen Huang and touting Nvidia’s success. Trump, who holds a financial stake in the company, also signaled he may ease trade restrictions to allow some chip sales to China, a move investors believe could send the stock climbing even further.
This AI-fueled boom is reminiscent of the iPhone’s debut 18 years ago, which propelled Apple to successive trillion-dollar milestones. However, concerns are mounting that this is a bubble. Regulators are flagging the risk of a market burst, citing the circular Nvidia-OpenAI deal and reports that most corporate AI pilot programs are failing to produce returns.