An NVIDIA logo appears in this illustration taken August 25, 2025. — Reuters
In the wake of strong sentiment that artificial intelligence (AI) will lead to a fresh wave of technological innovation, AI chip juggernaut Nvidia became the world’s first $5 trillion company on Wednesday.
Nvidia's $5tn mark was reportedly driven by investors' confidence, leading to a 4.91% rise in the tech giant's share price to $210.90 at the open of trading on Wall Street.
The overwhelming surge has pushed Nvidia’s market capitalisation past the never-before-seen threshold.
It was highlighted that the level of Nvidia's share surge was greater than the GDP of France or Germany, or higher than that of Tesla, Meta (Facebook), and Netflix combined.
Microsoft and Apple, the two other largest global market capitalisations, only just exceed $4 trillion in valuation each.
The skyrocketing spike in Nvidia’s share price follows strong sales, a flurry of new deals that include a partnership with Europe’s Nokia, as well as expectations that the company may soon regain access to China.
“While it’s almost unfathomable to think about a company reaching this milestone, it comes from a company with so many operational efficiencies that it seems to announce massive deals on a daily or weekly basis.”
Nvidia CEO Jensen Huang is expected in South Korea this week, where he will attend the sidelines of the APEC summit, with issues related to AI development likely to be discussed.
With an enormous treasure trove under its belt, Nvidia would invest $5 billion in struggling chip rival Intel, a response to the Trump administration’s desire to bring back more manufacturing of semiconductors to the US.