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Nvidia has become the world's first $5 trillion company, only three months following this tech leader initially surpassed the $4tn valuation mark.

By contrast, Nvidia’s value is greater than the GDP of Japan, India, and the UK, according to IMF data.

Soon after US stock markets began trading this Wednesday, Nvidia’s shares reached $207.86 with 24.3bn shares outstanding, placing its market cap at $5.05tn.

Ravenous appetite for Nvidia’s chips, seen as the most cutting edge in powering artificial intelligence products and software, is the primary driver that the company’s stock price has surged dramatically since early 2023.

The wider US stock market has reached new peaks this week, buoyed up by massive funding in AI technology.

Major Announcements and Partnerships

On Tuesday, Nvidia’s CEO, Jensen Huang, revealed $500bn in chip orders.

The company also unveiled a collaboration with Uber on robotaxis and a $1 billion funding in Nokia, with the two planning to work together on 6G technology.

Furthermore, Nvidia is joining forces with the US Department of Energy to build multiple AI supercomputers.

Recently, Nvidia stated that it will invest $100 billion in an AI research organization as part of a partnership that will add at least 10GW of AI computing facilities to ramp up the computing power for the owner of the AI assistant ChatGPT.

In August, Huang said Nvidia was discussing a potential new computer chip designed for the Chinese market with the Trump administration.

Donald Trump said aboard his plane that he would speak with the Chinese president, Xi Jinping, about Nvidia’s chips on Thursday.

Tech Surge and Economic Significance

Hitting the new benchmark puts more emphasis on the upheaval caused by an artificial intelligence craze that is considered the biggest tectonic shift in the tech sector since the tech pioneer Steve Jobs introduced the original smartphone nearly two decades back.

Apple rode the smartphone’s popularity to emerge as the first publicly traded company to be worth $1 trillion, $2tn and finally, $3 trillion.

Risks and Warnings

But there are concerns of a possible AI bubble, with officials at the Bank of England recently flagging the growing risk that equity values driven by the artificial intelligence surge might collapse.

IMF’s managing director has issued comparable warnings.