US chipmaker Nvidia has become the first company in history to be valued at more than $5 trillion (£4.1 trillion), fuelled by a surge in demand for artificial intelligence technology.
Shares in the California-based firm rose to $207.86 on Wednesday, taking its total market value to $5.05 trillion. The milestone comes just three months after it hit $4 trillion, reflecting the extraordinary pace of investor enthusiasm for AI.
The company’s valuation now exceeds the annual economic output of the UK, Japan and India, according to data from the International Monetary Fund.
Powering the AI revolution
Nvidia, founded in 1993, designs the powerful computer chips that underpin many of today’s most advanced AI systems. Its processors are used in everything from ChatGPT and driverless cars to robotics and scientific research.
Over the past 18 months, Nvidia’s share price has soared as demand for its chips has outstripped supply. Investors view the company as the main beneficiary of the global rush to develop artificial intelligence.
On Tuesday, chief executive Jensen Huang revealed Nvidia had received $500bn worth of chip orders, alongside new partnerships with Uber, Nokia and the US Department of Energy.
The deal with Uber will support the company’s robotaxi ambitions, while a $1bn investment in Nokia aims to develop next-generation 6G networks. Nvidia also plans to build seven new AI supercomputers with the US government.
Last month, it confirmed a $100bn investment in OpenAI, the developer of ChatGPT, to expand its network of AI data centres worldwide.
A historic moment — and a note of caution
Nvidia’s rise is being compared to Apple’s transformation during the smartphone era, when the iPhone helped make it the world’s first trillion-dollar company.
But the dramatic growth has sparked warnings from economists about the risk of an AI-driven market bubble. Earlier this month, the Bank of England and the International Monetary Fund cautioned that soaring valuations in tech stocks could lead to instability if investor optimism falters.
Despite those concerns, Wall Street continues to rally around Nvidia, seeing it as the defining company of the AI age. Its technology is already used in industries from healthcare and finance to climate science and defence.
A company in the global spotlight
Nvidia’s influence now stretches beyond Silicon Valley. The company has reportedly held talks with former US president Donald Trump about designing AI chips for China, amid ongoing restrictions on technology exports.
The discussions come as Nvidia navigates growing political scrutiny over its role in the global tech race.
For now, its position at the top of the market appears secure. In little more than two years, Nvidia has gone from a specialist gaming chip maker to the world’s most valuable company — a symbol of how artificial intelligence is reshaping the modern economy.
