Nvidia Makes History with USD5T Market Valuation
(MENAFN) Nvidia has crossed an unprecedented $5 trillion market valuation, making history as geopolitical developments fuel investor confidence in the chipmaker's future.
The breakthrough followed US President Donald Trump's revelation that he intends to address Nvidia's Blackwell chip technology during discussions with Chinese President Xi Jinping.
The two economic superpowers' leaders are set to meet Thursday in efforts to de-escalate bilateral tensions. "I expect to be lowering that because I believe they're going to help us with the fentanyl situation," Trump told reporters as he headed to South Korea on Wednesday.
Nvidia stock surged up to 5.2%, hitting $211.47 and propelling the semiconductor giant past the $5 trillion threshold—a mere four months after it eclipsed $4 trillion. CEO Jensen Huang has recently announced multiple strategic alliances as worldwide appetite for artificial intelligence infrastructure explodes.
"Investors have been taught to look past AI valuations, and if what everyone is betting on with AI comes to fruition, then those valuations are probably justified – though some of it may be hard to live up to," chief investment officer at Fort Pitt Capital Group Dan Eye told Bloomberg. He highlighted emerging threats from rivals Advanced Micro Devices and Broadcom, alongside China's domestic chip development ambitions.
"Nvidia currently holds more than 90% of the market share, and that's more likely to go down than up," Eye added.
On Tuesday, Apple became the third corporation to surpass $4 trillion in market capitalization, joining Nvidia and Microsoft. The surge stemmed from unexpectedly robust sales of its newest iPhone models, with shares climbing approximately 25% across the previous three months.
Apple's resurgence represents a dramatic reversal after early-year struggles driven by tariff pressures and supply-chain disruptions. However, Wall Street remains split on the company's artificial intelligence roadmap.
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