Nvidia has officially redefined the limits of the stock market. The chipmaker’s valuation hit $5.05 trillion on Wednesday, making it the first company in history to be worth $5 trillion. This milestone was reached as shares hit $207.86 amid a broad AI-driven rally.
The company’s growth has been staggering, adding $1 trillion in value in just three months. This surge is fueled by “ravenous” demand for its advanced AI chips, which are seen as the key to the next generation of technology.
Nvidia’s $5 trillion value is now greater than the individual economies of India, Japan, and the United Kingdom. CEO Jensen Huang has backed this up with a $500 billion order book and a $100 billion partnership with OpenAI.
The company’s success has also been praised by President Donald Trump, who owns Nvidia shares and is pushing for a chip deal with China.
This new, $5 trillion limit is also a new high for market risk. The IMF and the Bank of England have both warned of an AI bubble. They are concerned that “circular” deals and a high failure rate for corporate AI projects mean this valuation is not built on a stable foundation.