Nvidia has officially become the first publicly traded company to reach a $5 trillion market capitalization, following a more than 4% surge in its stock price on Wednesday, according to CNBC.
The milestone underscores Nvidia’s transformation from a niche graphics processor manufacturer into a powerhouse driving the global artificial intelligence revolution. The company’s shares have climbed over 50% in 2025 alone, propelled by record demand for its AI chips — now central to data centers, cloud computing, and next-generation AI systems.
“If our expectations for AI are correct, we are at the very beginning of a technology revolution,” said Cathie Wood, CEO of Ark Invest, speaking at the Saudi Arabia Future Investment Initiative.
A new era for Nvidia and AI dominance
Under the leadership of CEO Jensen Huang, Nvidia has become the backbone of the AI infrastructure powering products from ChatGPT to autonomous vehicles. The company recently announced plans to build seven supercomputers for the U.S. government and expects around $500 billion in AI chip orders, cementing its leadership in the global semiconductor market.
In a strategic move to expand beyond chips, Nvidia also revealed a $1 billion investment in Nokia to co-develop 6G network technologies, signaling its intention to play a critical role in the next generation of global connectivity.
Market reactions and broader context
The $5 trillion valuation also rippled across global markets, with Apple and Microsoft each crossing the $4 trillion mark as AI-driven optimism fuels Wall Street’s latest rally. However, analysts caution that valuations may be overheating, with institutions like the IMF and Bank of England warning that a cooldown in AI enthusiasm could trigger market turbulence.
Despite such warnings, Nvidia’s dominance continues to reshape the landscape of modern technology — from cloud infrastructure to next-generation computing.
Milestones on Nvidia’s rise
- May 2023: Nvidia crossed the $1 trillion mark, joining the ranks of Apple, Microsoft, Alphabet, and Amazon.
- February 2024: Its market value doubled to $2 trillion, driven by soaring AI chip demand.
- June 2024: Nvidia surpassed $3 trillion, briefly becoming the second most valuable company in the world.
- October 2025: The company made history, becoming the first to ever reach $5 trillion — a feat symbolizing the scale and speed of the AI-driven economy.
As the world increasingly relies on AI for automation, data analysis, and creativity, Nvidia’s $5 trillion milestone isn’t just a financial record — it’s a defining moment in the evolution of technology itself.
