Apple Reaches Landmark as World’s Most Valuable Company
Nvidia recently achieved a historic milestone, becoming the world’s first company to reach a market valuation of $5 trillion. This significant accomplishment was driven by a surge in demand for its AI chips. The company crossed this landmark at the opening of the market on Wednesday, just three months after surpassing the $4 trillion mark.
Nvidia’s Rapid Growth in Valuation
It took Nvidia approximately 13 months to climb from a $3 trillion valuation to $4 trillion. Following its latest milestone, Nvidia’s shares (NVDA) rose by 3% on Wednesday. The stock has gained roughly 50% in 2025 and has consistently ranked among the S&P 500’s top-performing stocks due to increasing investment in artificial intelligence.
Market Influences and Strategic Collaborations
The rise in Nvidia’s stock was bolstered by optimistic discussions regarding potential negotiations between U.S. President Donald Trump and Chinese leader Xi Jinping. Such talks aim to expand the market access for Nvidia’s high-end AI chips in China.
On Tuesday, CEO Jensen Huang delivered an inspiring keynote at the GTC AI conference in Washington, outlining a future where Nvidia chips play a crucial role in various technologies, including cell towers, robotic factories, and self-driving vehicles. Huang’s positive remarks included commendations for President Trump.
The Role of AI in Nvidia’s Success
Nvidia’s AI chips are vital for operating data centers that are fundamental to modern technology. The company not only profits from high chip demand but is also making significant investments in major industry players.
In a notable development, Nvidia and OpenAI, creator of ChatGPT, have entered into a substantial partnership. OpenAI plans to purchase billions of dollars’ worth of chips from Nvidia, which will be complemented by a $100 billion investment from Nvidia over time. Additionally, Nvidia announced a $5 billion investment in chipmaker Intel.
Concerns in the AI Market
Despite these advancements, some analysts express caution regarding the sustainability of the AI market. The rapid spending and exceptional growth rates have led to speculation that this boom could resemble a bubble poised to burst.
Nvidia’s executives project that the company could capture up to $4 trillion in AI infrastructure expenditure by the decade’s end. In its most recent quarter, Nvidia reported net income nearing $26 billion.
