Nvidia has just completed one of the most unbelievable 12-week runs in financial history, adding $1 trillion to its value to become the world’s first $5 trillion company. The chipmaker’s market cap hit $5.05 trillion on Wednesday amid an all-out AI gold rush.
This breakneck pace, which far outstrips Apple’s historic rise, is being driven by a single factor: Nvidia’s total dominance of the AI chip market. Its processors are the essential tool for the AI revolution, and the tech industry’s “ravenous appetite” for them is fueling the surge.
The company’s valuation now eclipses the individual GDPs of major economies like India and Japan. This growth is backed by a $500 billion order book and new deals with Uber (robotaxis) and Nokia (6G).
A massive $100 billion investment in OpenAI will see Nvidia build new datacenters for the AI leader, further cementing its central role. The company also enjoys the backing of President Donald Trump, who owns shares and is pushing for sales to China.
This rapid growth, however, is precisely what worries regulators. The Bank of England and the IMF have warned that the AI boom is inflating a bubble. They and other critics are concerned about “circular” investments and the high failure rate of corporate AI projects.