Nvidia becomes the world's first $5 trillion company

Nvidia has become the world's first $5tn company as the artificial intelligence industry and the wider US stock market boom. Just three months ago, the Silicon Valley chipmaker was the first to break through the barrier of $4tn in market value. In comparison, Nvidia's value is now greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund (IMF), and it has far outgrown its competitors in the chip industry, gaining momentum as numerous tech stocks have surged in recent days.

Shortly after US stock markets opened on Wednesday, 29 October 2025, Nvidia's shares touched $207.86 with 24.3bn shares outstanding, putting its market capitalisation at about $5.05tn. Ravenous appetite for the company's chips, seen as the most cutting edge in powering artificial intelligence products and software, is the main reason its stock price has increased so rapidly since early 2023. The US stock market itself reached multiple record highs that week, buoyed by expansive investment in artificial intelligence.

Orders, partnerships and supercomputers

The record valuation followed a dense run of corporate announcements. On the Tuesday, Nvidia's chief executive, Jensen Huang, disclosed $500bn in chip orders. The company also announced a partnership with Uber on robotaxis and a $1bn investment in Nokia, with the two planning to work together on 6G technology. In addition, Nvidia is teaming up with the US Department of Energy to build seven new artificial-intelligence supercomputers.

• $500bn in chip orders disclosed by chief executive Jensen Huang
• A partnership with Uber on robotaxis
• A $1bn investment in Nokia and joint work on 6G technology
• Seven new artificial-intelligence supercomputers with the US Department of Energy
• A $100bn investment in OpenAI, adding at least 10 gigawatts of Nvidia datacentres

OpenAI's expansive plans for scaling its artificial-intelligence infrastructure are also heavily dependent on Nvidia's technology. Last month, Nvidia announced that it will invest $100bn in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia datacentres to ramp up computing power for the owner of the ChatGPT chatbot.

Political tailwinds and a historic benchmark

Jensen Huang and Nvidia have also gained the backing of Donald Trump, who called the chief executive an "incredible guy" during a speech in South Korea on Wednesday. The US president has frequently touted the company as a success story and suggested that he may allow a less-powerful version of its Blackwell chip to be sold to China, a move that could potentially send Nvidia's shares even higher. Trump also has a financial interest in the company, disclosing in a financial report that as of the end of last year he owned up to $1.3m worth of Nvidia shares. He said on Air Force One last week that he would speak with the Chinese president, Xi Jinping, about Nvidia's chips.

Hitting the new benchmark puts more emphasis on the upheaval being unleashed by the artificial-intelligence craze, widely viewed as the biggest tectonic shift in technology since Apple co-founder Steve Jobs presented the first iPhone 18 years ago. Apple rode the iPhone's success to become the first publicly traded company to be valued at $1tn, $2tn and eventually $3tn.

Bubble concerns

There are nonetheless concerns about a possible bubble. Officials at the Bank of England earlier this month flagged the growing risk that tech stock prices pumped up by the boom could burst, and the head of the IMF has raised a similar alarm. Part of the concern revolves around the circular nature of some of the industry's deals: Nvidia's $100bn investment in OpenAI, for example, hinges on OpenAI's own plans to buy millions of Nvidia's chips. The need for these chips is also primarily driven by the tech industry's desire to massively scale its computing power, even as there is growing concern from analysts over companies failing to secure revenue returns on their artificial-intelligence investments and over the fact that nearly all pilot programmes in businesses fail.

Company details

Nvidia is a Silicon Valley chipmaker whose processors are seen as the most cutting edge for powering artificial intelligence products and software. Official website: nvidia.com. Source: The Guardian.