Nvidia Corp. has become the first company to achieve a market capitalisation of $5 trillion, powered by a stunning stock rally that has cemented its place at the center of the global AI boom.
Shares of the Santa Clara, California-based company rose 3.5% after a string of recent announcements solidified its dominance in the AI race.
Nvidia has taken just three months to go from a market capitalisation of $4 trillion to $5 trillion—that's larger than the total valuation of the crypto market and roughly half the size of Europe's Stoxx 600 index.
The milestone underscores the Nvidia's swift transformation from a niche graphics-chip designer into the backbone of the global AI industry, turning CEO Jensen Huang into a Silicon Valley icon.
Since the launch of ChatGPT in 2022, Nvidia's shares have climbed twelve-fold as the AI frenzy propelled the S&P 500 to record highs, igniting a debate on whether frothy tech valuations could lead to the next big bubble.
“In the long run, we expect tech titans to strive to find second sources or in-house solutions to diversify away from Nvidia in AI, but these efforts will, at best, only chip away at, but not supplant, Nvidia's AI dominance,” said Brian Colello, senior equity analyst at Morningstar.
{{/usCountry}}“In the long run, we expect tech titans to strive to find second sources or in-house solutions to diversify away from Nvidia in AI, but these efforts will, at best, only chip away at, but not supplant, Nvidia's AI dominance,” said Brian Colello, senior equity analyst at Morningstar.
{{/usCountry}}Nvidia is due to report quarterly results on 19 November.