Nvidia poised to become first $5 trillion company
The company’s shares have been boosted by the AI boom and a flurry of new deals.
Nvidia is poised to become the first company to hit $5 trillion in market value, the latest milestone in an unprecedented surge that reflects the growing influence of artificial intelligence on markets and the economy.
The chipmaker’s shares recently topped $207 in premarket trading, ahead of the $205.76 needed for a $5 trillion valuation.
The stock has been boosted by exuberance for AI’s potential and a recent flurry of deals and partnerships with some of the biggest companies in AI and corporate America, from OpenAI and Oracle to Nokia and drugmaker Eli Lilly. Enthusiasm for Chief Executive Jensen Huang’s speech in Washington, D.C. also helped fuel gains this week.
Nvidia is now larger than AMD, Arm Holdings, ASML, Broadcom, Intel, Lam Research, Micron, Qualcomm and Taiwan Semiconductor Manufacturing Co. combined, according to Dow Jones Market Data. Its value also exceeds entire sectors of the S&P 500, including utilities, industrials and consumer staples.
The Santa Clara, Calif., company designs the chips, known as graphics processing units, or GPUs, that power the AI industry, placing it at the heart of the boom that has carried stocks to record after record.
Some investors, technology executives and industry analysts have begun to raise the prospect of an AI bubble akin to the dot-com boom and bust. Technology companies are pouring hundreds of billions into data center development and chips and taking on heavy debt, but current revenue is relatively tiny.
Nvidia in September agreed to invest up to $100 billion in ChatGPT maker OpenAI, which would allow the startup to build and deploy at least 10 gigawatts of Nvidia systems for its AI data centers. Nvidia has also backed a host of AI startups. If heavy spending on the AI race wanes, some worry that Nvidia could be hit twice, with less revenue and declining value of its equity investments in customers.
Nvidia’s climb casts the AI trade in stark relief: the company first topped $2 trillion in March of 2024 and hit $3 trillion just 66 trading sessions later. By July 2025, it was the world’s first $4 trillion company, racing ahead of rivals Apple and Microsoft, both of which touched the $4 trillion mark for the first time Tuesday.
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