AI chipmaker Nvidia is the first $5 trillion company
By MICHELLE CHAPMAN, Associated Press Business Writer
Nvidia has made history by becoming the first company to reach a market value of $5 trillion, surpassing the $4 trillion mark just three months ago.
This milestone underscores the impact of the artificial intelligence revolution, which is considered the most significant technological shift since the introduction of the first iPhone by Apple co-founder Steve Jobs 18 years ago. Apple, propelled by the success of the iPhone, became the first publicly traded company to reach valuations of $1 trillion, $2 trillion, and eventually $3 trillion.
However, concerns about a potential AI bubble have surfaced, with officials at the Bank of England and the International Monetary Fund warning about the risks of inflated tech stock prices fueled by the AI boom.
Nvidia’s soaring stock price can be attributed to the high demand for its chips since early 2023. As of Wednesday, the company’s shares reached $207.86, with a market cap of $5.05 trillion and 24.3 billion shares outstanding.
For perspective, Nvidia’s value now exceeds the GDP of India, Japan, and the United Kingdom, according to the International Monetary Fund.
Nvidia’s CEO Jensen Huang recently revealed $500 billion in chip orders and announced partnerships with Uber for robotaxis, a $1 billion investment in Nokia for collaboration on 6G technology, and a joint effort with the Department of Energy to build seven new AI supercomputers.
Furthermore, Nvidia disclosed a $100 billion investment in OpenAI to expand computing power for the artificial intelligence chatbot ChatGPT by adding at least 10 gigawatts of Nvidia AI data centers.
In a noteworthy development, Nvidia is in discussions with the Trump administration about potentially designing a new computer chip for China, with President Donald Trump planning to address the matter with Chinese President Xi Jinping.
