In a stunning demonstration of market power, Nvidia’s $5.05 trillion valuation has officially surpassed the individual gross domestic products of India, Japan, and the United Kingdom. The chipmaker became the first $5T company on Wednesday, redrawing the map of global economic power.
This milestone is the result of an AI-driven surge that saw the company’s value increase by $1 trillion in just three months. Nvidia’s processors are seen as the “most cutting edge” for AI, and the insatiable demand for them has propelled the stock.
CEO Jensen Huang is leaning into this momentum, announcing a $500 billion order book. He also unveiled a string of partnerships, including a robotaxi project with Uber, a $1 billion 6G deal with Nokia, and a $100 billion investment in OpenAI.
The company’s rise has also been championed by President Donald Trump. Trump, who owns Nvidia shares, praised the company and is even planning to speak with China’s President Xi Jinping about allowing chip sales.
This concentration of value in a single company is raising alarms. The Bank of England and the IMF have both warned of a potential AI bubble. Critics are concerned that these valuations are not supported by real-world profits, pointing to the high failure rate of corporate AI pilots.
