The first company to reach $5 trillion in capitalization

Nvidia, the biggest beneficiary of the AI ​​boom, has become the first public company to surpass the $5 trillion market capitalization mark.

Nvidia reaches $5 trillion in market capitalization. Photo: Getty .

The company's shares rose more than 5.6% in early trading on Wednesday, October 29, to $212.19 . The gains came after recent positive news. US President Donald Trump said he expected to discuss the company's Blackwell chips with Chinese President Xi Jinping during their upcoming meeting.

Investors also seemed excited by comments from Nvidia CEO Jensen Huang earlier, who said the company expects AI chip sales to reach $500 billion . Nvidia is also building seven new supercomputers for the United States in the fields of security, energy and science , requiring thousands of Nvidia GPUs.

On the same day, the company announced a $1 billion investment in Nokia. Nvidia will use the Finnish company's products to "help telecommunications service providers launch AI-based 5G-Advanced and 6G networks on Nvidia platforms."

The milestone comes just three months after Nvidia crossed the $4 trillion mark, with its stock up more than 50% this year, fueled by a near-infinite demand for its graphics processors.

GPUs are widely used in data centers for training large language models, inference, and many other tasks. Nvidia GPUs are valuable because they are scarce. By putting them directly into ever-expanding data center projects, Nvidia ensures that scarcity is maintained.

Overall, tech stocks have soared this year, with investors optimistic that AI technology will revolutionize industries, much like the internet transformed business.

A series of billion-dollar deals have boosted market sentiment over the past year, with Nvidia at the center of many of the deals. These deals are aimed at spurring the development of data centers and infrastructure, building the computing power for resource-intensive AI models.

In September, Nvidia announced it would invest up to $100 billion in OpenAI, another beneficiary of the AI ​​boom. Both companies said they plan to deploy 10 gigawatts of Nvidia systems to power OpenAI’s systems.

With a market capitalization of $5 trillion , Nvidia's value is now larger than the total stock markets of every country except the US, China and Japan.

Source: https://znews.vn/cong-ty-dau-tien-can-moc-5000-ty-usd-von-hoa-post1598220.html