Nvidia becomes the first company with a value of $5 trillion

Chip makers now worth more than the entire crypto market

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Image: Nvidia

Nvidia stands on the brink of an unprecedented milestone: a market valuation of $5 trillion (€4.6 trillion). This remarkable achievement underscores just how central Nvidia has become in the rapidly growing artificial intelligence (AI) sector.

Following CEO Jensen Huang’s announcement of major orders for AI chips and plans to build supercomputers for the US government, Nvidia’s shares soared in pre-market trading. This success has transformed Nvidia from a specialised graphics chip manufacturer into a cornerstone of the global AI industry, outpacing Apple, Microsoft, and Google parent compant Alphabet.

Huang’s leadership has reinforced his status as a Silicon Valley icon. A $5 trillion (€4.6 trillion) valuation would put Nvidia’s market value above that of the entire crypto market. This illustrates Nvidia’s transformation into a key player in the global AI industry.

Analysts also credit Nvidia’s rise to unwavering confidence in sustained AI spending, though some warn of overvaluation.

Nvidia’s dominant position has attracted the attention of regulators worldwide. US restrictions on the export of advanced chips make Nvidia a key part of the strategy to limit China’s access to AI technology.

Despite challenges from rivals like Advanced Micro Devices and emerging startups, Nvidia remains the preferred choice for high-end AI chips. The H100 and Blackwell processors power major language models, including those behind tools like OpenAI’s ChatGPT and Elon Musk’s xAI. It’s worth noting that Apple and Microsoft have also reached market valuations of more than $4 trillion (€3.72 trillion).

Business AM

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