Key Takeaways
- On Wednesday, Nvidia became the first company to achieve a market value of $5 trillion.
- The next two largest companies are Microsoft and Apple, and each has a market value of approximately $4 trillion.
- Nvidia shares have grown more than 50% this year.
Four months after crossing the $4 trillion mark, Nvidia has become the first company to ever… $5 trillion market capitalization.
Nvidia stock rose more than 4% on Wednesday morning to reach $210, above the $205.76 needed for a market value of $5 trillion. Nvidia is now worth more than its competitors, including AMD, Intel, Micron and Qualcomm combined. The market value also exceeds that of entire sectors of the S&P 500, including utilities and consumer staples, reports The Wall Street Journal.
The milestone reflects the exceptional trajectory of Nvidia, which has evolved from making graphics cards to producing AI chips over the past decade, positioning itself at the heart of the AI boom. Nvidia includes companies such as Meta, Microsoft and OpenAI its largest customers. Nvidia shares have grown more than 50% so far and more than 1,500% in the past five years.
“A market cap of $5 trillion would have been unthinkable just a few years ago,” said Keith Lerner, chief investment officer and chief market strategist at Truist Advisory Services. Bloomberg. “The market certainly attaches great importance to the idea that AI will be transformational.”
Related: How Nvidia CEO Jensen Huang Transformed a Graphics Card Company Into an AI Giant: ‘One of the Most Remarkable Business Pivot Points in History’
Nvidia’s historic increase in value occurred shortly after CEO Jensen Huang announced Tuesday that the company expects to raise revenue $500 billion in orders for AI chips And build seven supercomputers for the US government. In other words, Huang said Nvidia has a huge pipeline of AI orders lined up, and is also poised to play a major role in powering America’s tech infrastructure.
Nvidia also announced on Tuesday that it did take a $1 billion stake in Nokia, a company that supplies mobile 5G equipment to telecom companies, to develop the next generation of mobile 6G technology using Nvidia’s chips.
Related: Nvidia’s CEO Jensen Huang says he has “created more billionaires” than anyone else
Nvidia’s first hit $2 trillion in market value in March 2024 and achieved a market cap of $3 trillion in June 2024, highlighting the rapid growth the company was experiencing, fueled by demand for AI computing technology.
Nvidia became the first company to surpass $4 trillion in market capitalization in early July. Microsoft was second, joining the $4 trillion club in late July. Apple recently became the third company to surpass $4 trillion in market capitalization, reaching the milestone earlier this week. Microsoft And Apple are the two largest companies after Nvidia, with valuations of around $4 trillion each at the time of writing.
Huang’s net worth has skyrocketed as Nvidia’s market value has grown. According to the Bloomberg Billionaires IndexHuang was worth about $180 billion at the time of writing, an increase of almost $68 billion from the beginning of the year, with most of his fortune tied up in his stake in Nvidia. He owns about 3.5% of the company, according to an October 2025 filing.
Huang has served as CEO of the company since its co-founder in 1993.
Key Takeaways
- On Wednesday, Nvidia became the first company to achieve a market value of $5 trillion.
- The next two largest companies are Microsoft and Apple, and each has a market value of approximately $4 trillion.
- Nvidia shares have grown more than 50% this year.
Four months after crossing the $4 trillion mark, Nvidia has become the first company to ever… $5 trillion market capitalization.
Nvidia stock rose more than 4% on Wednesday morning to reach $210, above the $205.76 needed for a market value of $5 trillion. Nvidia is now worth more than its competitors, including AMD, Intel, Micron and Qualcomm combined. The market value also exceeds that of entire sectors of the S&P 500, including utilities and consumer staples, reports The Wall Street Journal.
The rest of this article is locked.
Join Entrepreneur+ today for access.
#Nvidia #surpass #trillion #market