Achieving the new benchmark puts more emphasis on the upheaval caused by an artificial intelligence craze that is widely seen as the biggest tectonic shift in technology since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago. Apple capitalized on the success of the iPhone and became the first publicly traded company to be valued at $1 trillion, $2 trillion, and finally $3 trillion.
But there are concerns about a possible AI bubble, with Bank of England officials pointing out earlier this month the growing risk that tech share prices inflated by the AI boom could burst. The head of the International Monetary Fund has sounded a similar alarm.
The appetite for Nvidia’s chips is the main reason the company’s stock price has risen so quickly since early 2023. On Wednesday, shares were trading at $207.86 in early morning trading with 24.3 billion shares outstanding, giving the market value $5.05 trillion.
By comparison, Nvidia’s value is greater than the GDP of India, Japan and the United Kingdom, according to the International Monetary Fund.
On Tuesday, Nvidia CEO Jensen Huang announced $500 billion in chip orders. The company also announced a partnership with Uber on robotaxis and a $1 billion investment in Nokia, with the two planning to collaborate on 6G technology. In addition, Nvidia is working with the Department of Energy to build seven new AI supercomputers. Last month, Nvidia announced it will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to boost computing power for the owner of artificial intelligence chatbot ChatGPT.
In August, Huang said Nvidia was discussing with the Trump administration a potential new computer chip designed for China. President Donald Trump said on Air Force One that he will speak with Chinese President Xi Jinping on Thursday about Nvidia’s chips.
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