Nvidia becomes world’s first $5 trillion company amid AI chip frenzy

Nvidia is on the brink of making history, with its market valuation nearing an astonishing $5 trillion, driven by the unstoppable global demand for artificial intelligence (AI) technology.

The milestone would make Nvidia the first company ever to reach such a valuation, solidifying its position at the centre of the AI revolution.

Shares of the Santa Clara–based chip giant surged over 3% in premarket trading after CEO Jensen Huang revealed that Nvidia had secured $500 billion in AI chip orders and plans to build seven supercomputers for the US government.

Once known primarily for gaming graphics cards, the AI giant has rapidly evolved into the backbone of the global AI industry, surpassing tech titans like Apple, Microsoft, and Alphabet.

If the valuation crosses the $5 trillion mark, Nvidia’s market worth would exceed the entire cryptocurrency market and be equivalent to roughly half of Europe’s Stoxx 600 index.

The company reached $4 trillion as recently as July, a meteoric rise rarely seen in financial history.

Analysts have credited the surge to investor faith in continued AI spending, though some warn that Nvidia’s towering valuation leaves little room for error.

“Nvidia has had everything go right — and all within 24 hours,” said Michael Brown, senior strategist at Pepperstone.

However, the company’s rapid ascent has also caught the attention of regulators worldwide.