Nvidia becomes the world's first company to reach a value of $5 trillion

The Silicon Valley chipmaker has become the world's first company to reach a market value of $5 trillion, just three months after surpassing the $4 trillion mark.

Nvidia is the first company to reach a value of $5,000 billion, but experts are still concerned about the risk of the AI ​​bubble collapsing - Photo: REUTERS

According to the Guardian on October 30, Nvidia has become the world's first company to reach a market value of $5,000 billion, amid a boom in the artificial intelligence (AI) industry and the US stock market.

Just three months ago, the chipmaker became the first company to surpass the $4 trillion mark in market value.

For comparison, Nvidia's value is greater than the GDP of India, Japan and the UK, according to the International Monetary Fund (IMF).

As soon as the US market opened on October 29, Nvidia shares increased to 207.86 USD/share, bringing the company's market capitalization to 5.05 trillion USD with 24.3 billion shares outstanding.

The market's fervent appetite for Nvidia's chips — considered the most advanced in powering AI products and software — is behind the company's rapid rise in share price since early 2023.

Previously, on October 28, Nvidia CEO Jensen Huang revealed that the company had $500 billion worth of chip orders.

The company also announced a partnership with Uber on self-driving taxis and a $1 billion investment in Nokia to develop 6G technology. Additionally, Nvidia is working with the US Department of Energy to build seven new AI supercomputers.

The chipmaker continues to play a key role in OpenAI’s ecosystem, with Nvidia announcing last month that it plans to invest $100 billion in the company as part of a partnership that will add at least 10 gigawatts of AI data centers, significantly increasing OpenAI’s computing capacity.

Mr. Huang and Nvidia also received support from President Trump, who during a visit to South Korea this week praised Mr. Huang as “an incredible human being” and disclosed that he holds $1.3 million in Nvidia stock.

Mr Trump also suggested he would allow the export of a weaker version of the Blackwell chip to China - a move that is expected to send Nvidia's stock price soaring.

Analysts say Nvidia's $5 trillion valuation marks a historic turning point in the technology industry, but financial experts are also concerned about the risk of an AI bubble, with the Bank of England and the International Monetary Fund (IMF) recently warning that tech stock prices are being inflated by a wave of investment in artificial intelligence and could collapse at any time.

Part of the concern about an AI bubble revolves around the cyclical nature of some deals in the industry. Nvidia invested $100 billion in OpenAI, but OpenAI used much of that money to buy chips from Nvidia itself.

Despite the growing need for computing, analysts say many businesses have yet to demonstrate the ability to make real profits from AI projects, with most pilot programs failing.

XUAN THAO

Source: https://tuoitre.vn/nvidia-tro-thanh-cong-ty-dau-tien-tren-the-gioi-dat-tri-gia-5-000-ti-usd-20251030132024085.htm