Nvidia Nears $5 Trillion Valuation as AI Chip Demand Powers Record Rally
Photo Credit: @nvidia
Nvidia is on the brink of becoming the world’s first company to reach a $5 trillion market valuation, driven by a powerful surge in demand for artificial intelligence (AI) technology. Shares of the California-based chipmaker jumped 2.8% in premarket trading after CEO Jensen Huang announced $500 billion in AI chip orders and plans to build seven AI supercomputers for the U.S. government.
This marks Nvidia’s rapid transformation from a niche graphics chip manufacturer into the cornerstone of the global AI revolution, outpacing giants like Apple, Microsoft, and Alphabet. The company’s valuation milestone comes just months after it crossed the $4 trillion mark in July, highlighting one of the fastest growth trajectories in modern market history. Analysts say the surge reflects strong investor confidence that AI-related spending will continue rising across industries.
Nvidia’s dominance has also made it a focal point of U.S. trade policy. Washington’s export restrictions on advanced chips to China have turned the company into a crucial player in geopolitical negotiations. Meanwhile, Huang’s recent announcements reinforced Nvidia’s leadership in AI infrastructure, particularly with its Blackwell chips, which power data centers and supercomputers worldwide.
With its growing market weight in the S&P 500 and Nasdaq 100, Nvidia now influences global equities like few companies ever have, solidifying its position as the defining force of the AI era.
Source: Moneycontrol
