Nvidia First to โHit $5 Trillion Market Cap, โFueled by AI demand
New York – Nvidia, โthe leading designer of graphics processing units (GPUs), surged past a $5 trillion marketโข valuation onโฃ Wednesday, marking a โคhistoric first for any companyโ globally. The milestone underscores the intenseโ investor appetite forโข companies positioned to benefit from the rapid expansion of artificial intelligence.
Shares of the California-based technology giant roseโข 5.45% to $211.99 shortly โฃafter the opening ofโ trading on Wall Street,โฃ pushing its market capitalization above $5.1 trillion. This figure exceeds the gross domestic โฃproduct of both France and Germany, and surpasses the combined market value of Tesla, Meta (Facebook), โand Netflix.
Nvidia’s stock has climbed nearly 60% since the beginning of theโข year, driven byโข strong sales of its GPUs, which areโ essential for powering AI applications. While not the original developer of GPUs, Nvidiaโฃ strategically focused on the technology starting in the late 1990s, transitioning from videoโ games to cloud โขcomputing โขand establishing itselfโข as a leader in the field.
The company has recently demonstrated its commitment to โคtheโ AI ecosystem through notable investments. Onโ Tuesday, Nvidia announced a $1 billion investment forโ a 2.9% stakeโ in Finnish telecom equipment maker Nokia.Inโ late September, the company pledged $100 billion toโ support OpenAI, the creator of ChatGPT, in building โขits data centers.
Despite the bullish outlook,some analysts caution against a potential “AI bubble.” Sam Stovall of CFRA, an autonomous financial research company, noted that “valuations are vrey high” โand “shares couldโ therefore be vulnerable to any bad news.”
Market intelligence firm Gartner projects global spending on โฃAI toโข reach approximately $1.5 trillion in 2025, and exceed $2 trillion โin 2026, representing nearly 2% of global GDP.
