Nvidia has built a $5 trillion kingdom. The Silicon Valley chipmaker’s market capitalization officially hit $5.05 trillion on Wednesday, a figure that now dwarfs the individual gross domestic product of economic giants like India, Japan, and the United Kingdom.
This staggering valuation, a world first, is the direct result of the global artificial intelligence boom. Nvidia’s processors are the critical hardware for AI development, and the tech industry’s massive investment in AI has sent Nvidia’s stock soaring. The company gained $1 trillion in value in just the last three months.
The company’s CEO, Jensen Huang, recently underscored this momentum by announcing $500 billion in chip orders. He also unveiled a series of major new ventures, including a robotaxi project with Uber, a 6G partnership with Nokia, and a $100 billion investment in OpenAI to build new AI datacenters.
Nvidia’s success has earned it praise from President Donald Trump, who called Huang “incredible” and disclosed his own financial interest in the company. Trump is also reportedly considering allowing some chip sales to China, which could expand Nvidia’s market even further.
This tectonic shift in technology is being compared to the launch of the iPhone. However, the speed of this ascent has prompted warnings of an AI bubble. The Bank of England and the IMF have both flagged the risk of a market correction, as critics question whether the massive AI investments will ever produce real-world revenue returns.